Module 1

Question 1

When was the IIA found?

Answer 1

1941

Question 2

Operational Auditing is defined as a ___-___ , ____, ____ evaluation of organizational activities

Answer 2

Future-oriented, Systematic, Independent

Question 3

What is the primary source of evidence in operational audting?

Answer 3

Operational Policies and Achievements

Question 4

T or F: Financial data and internal controls are redundant to review after operational policies

Answer 4

False. They can be supplementary

Question 5

What is the main goal of operational audit?

Answer 5

To ensure that the management and operational procedures are functioning effectively and efficiently meeting stated objectives

Question 6

What is the difference between an internal audit and an operational audit?

Answer 6

Operational Audit can be externally outsourced

Question 7

T or F: Engaging in risk based auditing means that internal auditors can scope in organizational risks

Answer 7

False. Broader view

Question 8

What is the opposite of risk based auditing?

Answer 8

Controls-based auditing

Question 9

Controls based auditing is an audit that focuses on internal controls. What is the problem with that?

Answer 9

It doesn’t consider the value of the controls they are testing to the overall process

Question 10

What are the other areas that internal auditors need to look at beyond the traditional requirements?

Answer 10

1. OpMan
2. HR
3. IT
4. Marketing
5. Corporate Social Responsibility
6. Environmental Health and Safety

Question 11

T or F External auditors are regarded lowly as compared to internal auditors

Answer 11

False. Both auditors are seen as obstacles

Question 12

How do internal auditor serve the public and common interest?

Answer 12

Making sure that the owners receive the return on their investments they are entitled to

Ensuring that the means of generating these profits are within the confines of the law

Question 13

T or F: The traditional approach to internal auditing was to perform postmortem reviews.

Answer 13

T

Question 14

Identify the Future Oriented Threat: Reliable supply of water and electricity

Answer 14

Environemental

Question 15

Identify the Future Oriented Threat: Building effective business partnerships

Answer 15

Strategic

Question 16

Identify the Future Oriented Threat: business continuity due to staff turnovers

Answer 16

Technological

Question 17

Identify the Future Oriented Threat: system development

Answer 17

Operational

Question 18

Threats and vulnerabilities can be evaluated in ___ and ___ terms, but also beyond the ___ ___

Answer 18

medium, long, national borders

Question 19

What are the three main skills for internal auditors by the IIA

Answer 19

1. Communication Skills
2. Problem Identification
3. Knowledge on Industry Changes

Question 20

What dimensions should the skills be acquired?

Answer 20

1. Individual
2. Internal Audit Unit

Question 21

Integrated Auditing is the simultaneous inclusion of ___ and __ subjects in the review

Answer 21

Business
IT

Question 22

In integrated auditing, what comes first, financial/operational or IT auditors.

Answer 22

Financial/operational

Question 23

Identify the Standard number: Internal auditors must possess the knowledge, skills and other competencies needed to perform their individual responsiblities.

Answer 23

1210

Question 24

Identify the Standard number: Internal auditors must have sufficient knowledge to Key IT risk and controls

Answer 24

1210.A3

Question 25

Identify the Standard number: in exercising due professional care internal auditors must consider the use of technology based audit and other data analysis techniques

Answer 25

1220.A2

Question 26

Identify the Standard number: Assurance procedures alone do not guarantee that all significant risks will be identified

Answer 26

1220.A3

Question 27

Identify the Standard number: Planning. The ___ must establish a risk based plan to determine the priorities of the internal audit activity, consistent with the ____ goals

Answer 27

2010. CAE, Organization's

Question 28

Identify the Standard number: Risk management

Answer 28

2120

Question 29

Identify the Standard number: Control. Evaluate controls by evaluation their effectiveness and efficiency and by promoting ___ ___

Answer 29

2130. Continuous improvement

Question 30

Identify the Standard number: Planning considerations. Objectives of the activity, risks to the activity, the controls used to lower the risk to an acceptable level

Answer 30

2201

Question 31

According to 2220.A1 the scope of the engagement must include consideration of systems, personnel, properties, including those under the control of?

Answer 31

third parties

Question 32

Identify the Standard number: Identifying information

Answer 32

2310

Question 33

Identify the Standard number: The documenting information must be documented to support ___ and ___ results

Answer 33

2330. Conclusions and engagement results

Question 34

T or F According to 2410.A2 internal auditors are discouraged to acknowledge satisfactory performance in engagement communications

Answer 34

False. Encouraged

Question 35

Identify the Standard number: Quality of Communications

Answer 35

2420