Foundations of Internal Auditing

Question 1

A department, division, team of consultants, or other practitioner(s) that provide independent, objective assurance and consulting services designed to add value and improve an organization’s operations.

Answer 1

Internal audit activity

Question 2

Advisory and related client service activities intended to add value and improve an organization’s governance, risk management, and control processes without the internal auditor assuming management responsibility.

Answer 2

Consulting services

Question 3

For which audit services are the nature and scope agreed with the client beforehand?

Answer 3

Consulting serivces

Question 4

Principles relevant to the profession and practice of internal auditing and Rules of Conduct describing behavior expected of internal auditors.

Answer 4

Code of ethics

Question 5

A formal written document that establishes the internal audit activity’s purpose, authority, and responsibility.

Answer 5

Charter

Question 6

Which three things does the internal audit charter clarify?

Answer 6

1. Establishes the internal audit activity’s position within the organization
2. Authorizes access to records, personnel, and physical properties relevant to the performance of engagements
3. Defines the scope of internal audit activities

Question 7

A specific internal audit assignment, task, or review activity.

Answer 7

Engagement

Question 8

Internal audits, control self-assessment reviews, fraud examinations, and consultancies are all examples of what?

Answer 8

Audit engagements

Question 9

Objective examination of evidence for the purpose of providing an independent assessment on risk management, control, or governance processes for an organization.

Answer 9

Assurance services

Question 10

The highest level governing body charged with the responsibility to direct and/or oversee the organization’s activities and hold senior management accountable.

Answer 10

Board

Question 11

The conceptual framework that organizes the authoritative guidance promulgated by the IIA.

Answer 11

International Professional Practices Framework (IPPF)

Question 12

The top position in an organization responsible for internal audit activities.

Answer 12

Chief Audit Executive (CAE)

Question 13

An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.

Answer 13

Internal auditing

Question 14

For which three processes does the internal audit activity evaluate and provide recommendations for improvement?

Answer 14

1. Risk management
2. Control
3. Governance