Foundations Flashcards
(24 cards)
The primary intent of internal audit assurance activities is to
assess evidence relevant to the subject matter of interest and provide conclusions
Adherence to the Core Principles for the Professional Practice of Internal Auditing, as a whole, best demonstrates
the effectiveness of the internal audit activity.
The internal audit activity should contribute to the organization’s governance by evaluating the processes through which
risk and control information is communicated.
According to The IIA’s Code of Ethics, the principle of integrity requires internal auditors to do which of the following?
Respect and contribute to the legitimate and ethical objectives of the organization
Who should the IA dept not report to functionally? But they can report to administratively?
IA dept should report functionally to the board to reduce independence issues. BUT can report administratively to the CFO or CEO.
What is included within the IA Charter?
internal audit charter establishes the internal audit activity’s position within the organization, nature of the chief audit executive’s functional reporting relationship with the board; authorizes access to records, personnel, and physical properties relevant to the performance of engagements; and defines the scope of internal audit activities.”
What is not included within the IA charter
It does not specify the length of tenure of any internal audit staff. Revisions to the charter require approval. The annual audit plan will still need approval even with a signed charter.
What is the purpose for the International Standards for the Professional Practice of Internal Auditing?
The provide separate mandatory instructions for the application of Attribute an Performance Standards
When performing a consulting activity, the IA function cannot perform duties which (also provide an example)
may impair either objectivity or independence. An example of something that can do is review systems of control before implementation.
What should the IA function not perform?
They should not perform management actions. An example could be a Quality Control over pension calculations.
IIA publishes three types of Standards to guide adherence to the International Professional Practices Framework. Which type describes the nature of internal auditing and provides quality criteria against which services can be measured?
Performance Standards
Which instrument/section of the Charter establishes the authority and obligations of the audit staff and delineates appropriate types of auditing activities / access to information
The Function and Responsibility (F&R) Statement
How many parties are generally involved in a consulting agreement?
two
Can an auditor take part of designing corrective action as a result of the consulting agreement
Yes, but management would be the ones to actually implement it.
What are the various types of informal consulting services
Informal consulting services include routine activities—such as participation in standing committees, limited-life projects, or ad hoc meetings—and routine information exchange.
How would you best describe the Standards relevant to the internal audit function
principles-based, mandatory requirements for the professional practice of internal auditing and for evaluating the effectiveness of performance, and they are internationally applicable at organizational and individual levels.
How would you best describe the Code of Ethics relevant to the internal audit function
The Code of Ethics, describes the minimum requirements for the ethical conduct of and the behavioral expectations for internal auditors.
What are the 10 core principles of internal auditing
The IIA publishes three types of Standards to guide adherence to its International Professional Practices Framework. Which type expands guidance and provides requirements applicable to assurance and consulting engagements?
Implementation Standards
What is the purpose of the IIAs code of ethics
Promoting an ethical culture
What is part of the Mission of Internal Audit
Protecting Organizational value
can you give me a loose definition of assurance services
Assurance services involve the IAs objective assessment of evidence to provide an independent opinion or conclusion
Which instrument establishes the authority and obligations of the audit staff and delineates appropriate types of auditing activities and access necessary to execute the roles outlined in the charter?
Function and responsibility (F and R) statement
