Question 1

Performance audits are often categorised as functional, organisational, or special assignments.

Accepted Answer

A) True 
 B)False

Question 2

To maximize its effectiveness, to whom should the internal audit department report?

Accepted Answer

A)  chief financial officer 
B)  board of directors 
C)  external auditor 
D)  shareholders 
A)  chief financial officer 
B)  board of directors 
C)  external auditor 
D)  shareholders

Question 3

Describe the five types of reports that might be issued by an auditor of a service organisation (service auditors).

Accepted Answer

.a report expressing an audit opinion on

Question 4

Performance auditing is the review of an organisation for efficiency and effectiveness.Discuss what is meant by the terms (1)'effectiveness' and (2)'efficiency'.

Accepted Answer

(1)Effectiveness refers to the

Question 5

The use of negative assurances is inappropriate in review reports.

Accepted Answer

A) True 
 B)False

Question 6

Government auditors-general have a mandate to conduct:

Accepted Answer

A)  financial statement audits. 
B)  compliance audits. 
C)  performance audits. 
D)  all of the above 
A)  financial statement audits. 
B)  compliance audits. 
C)  performance audits. 
D)  all of the above

Question 7

Examination attestation engagements result in a conclusion that is in a positive form, whereas review attestation engagements result in a conclusion in the form of a negative assurance.

Accepted Answer

A) True 
 B)False

Question 8

A non-audit engagement in which the accountant undertakes to present, in the form of financial statements, information that is the representation of management, without undertaking to express any assurance on the statements is called a review engagement.

Accepted Answer

A) True 
 B)False

Question 9

A factual conclusion with limited distribution results from:

Accepted Answer

A)  an examination. 
B)  a compilation report. 
C)  a review. 
D)  agreed-upon procedures. 
A)  an examination. 
B)  a compilation report. 
C)  a review. 
D)  agreed-upon procedures.

Question 10

A typical objective of a performance audit is to determine whether an entity's:

Accepted Answer

A)  financial statements fairly present the results of operations. 
B)  operational information is in accordance with generally accepted government auditing standards. 
C)  specific operating units are functioning efficiently and effectively. 
D)  internal control is adequately operating as designed. 
A)  financial statements fairly present the results of operations. 
B)  operational information is in accordance with generally accepted government auditing standards. 
C)  specific operating units are functioning efficiently and effectively. 
D)  internal control is adequately operating as designed.

Question 11

Which one of the following statements regarding types of performance audits is False?

Accepted Answer

A)  The emphasis in an organisational audit is on how efficiently and effectively functions interact. 
B)  Special operational auditing assignments arise at the request of management. 
C)  An advantage of functional auditing is its ability to evaluate interrelated functions. 
D)  A functional audit has the advantage of permitting specialisation by auditors. 
A)  The emphasis in an organisational audit is on how efficiently and effectively functions interact. 
B)  Special operational auditing assignments arise at the request of management. 
C)  An advantage of functional auditing is its ability to evaluate interrelated functions. 
D)  A functional audit has the advantage of permitting specialisation by auditors.

Question 12

The two most important qualities for an internal auditor to possess are independence and competence.

Accepted Answer

A) True 
 B)False

Question 13

Discuss three major differences between performance auditing and financial auditing.

Accepted Answer

.Purpose of the audit.Financial auditing

Question 14

A financial statement review includes obtaining an understanding of internal control.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a compliance element of the National Greenhouse Energy Reporting (NGER)audit framework?

Accepted Answer

A)  the identification and measurement of emissions sources 
B)  record-keeping requirements 
C)  a registered corporation's business structure 
D)  all of the above 
A)  the identification and measurement of emissions sources 
B)  record-keeping requirements 
C)  a registered corporation's business structure 
D)  all of the above

Question 16

Before a performance audit for effectiveness can be performed, there must be:

Accepted Answer

A)  a review performed by either an independent or an internal auditor. 
B)  a financial audit by an internal auditor. 
C)  a financial audit by an independent auditor. 
D)  specific criteria developed to define effectiveness. 
A)  a review performed by either an independent or an internal auditor. 
B)  a financial audit by an internal auditor. 
C)  a financial audit by an independent auditor. 
D)  specific criteria developed to define effectiveness.

Question 17

Independence of internal auditors is enhanced appropriately by having the internal audit department report to the:

Accepted Answer

A)  controller. 
B)  board of directors. 
C)  external auditor. 
D)  treasurer. 
A)  controller. 
B)  board of directors. 
C)  external auditor. 
D)  treasurer.

Question 18

An accountant's report expressing an opinion on an entity's internal control should:

Accepted Answer

A)  include an opinion concerning management's assertions about whether the cost of correcting any material weaknesses or deficiency would exceed the benefits of reducing the risk of errors and irregularities. 
B)  briefly explain the broad objectives and inherent limitations of internal control. 
C)  state that the study and evaluation of internal control was conducted in accordance with generally accepted auditing standards. 
D)  clearly disclaim responsibility for the establishment and maintenance of internal control. 
A)  include an opinion concerning management's assertions about whether the cost of correcting any material weaknesses or deficiency would exceed the benefits of reducing the risk of errors and irregularities. 
B)  briefly explain the broad objectives and inherent limitations of internal control. 
C)  state that the study and evaluation of internal control was conducted in accordance with generally accepted auditing standards. 
D)  clearly disclaim responsibility for the establishment and maintenance of internal control.

Question 19

Under Australia's National Greenhouse and Energy Reporting Act 2007, the regulator can order compliance audits in two ways.Identify and describe them.

Accepted Answer

1.If the regulator has reasonable ground

Question 20

The Institute of Internal Auditors Practice Standards regarding attributes include four categories of guidance that encompass both financial and operational auditing.List these categories of the Attribute Standards.

Accepted Answer

.independence and objectivity

Performance audits are often categorised as functional, organisational, or special assignments.

To maximize its effectiveness, to whom should the internal audit department report?

Describe the five types of reports that might be issued by an auditor of a service organisation (service auditors).

Performance auditing is the review of an organisation for efficiency and effectiveness.Discuss what is meant by the terms (1)'effectiveness' and (2)'efficiency'.

The use of negative assurances is inappropriate in review reports.

Government auditors-general have a mandate to conduct:

Examination attestation engagements result in a conclusion that is in a positive form, whereas review attestation engagements result in a conclusion in the form of a negative assurance.

A non-audit engagement in which the accountant undertakes to present, in the form of financial statements, information that is the representation of management, without undertaking to express any assurance on the statements is called a review engagement.

A factual conclusion with limited distribution results from:

A typical objective of a performance audit is to determine whether an entity's:

Which one of the following statements regarding types of performance audits is False?

The two most important qualities for an internal auditor to possess are independence and competence.

Discuss three major differences between performance auditing and financial auditing.

A financial statement review includes obtaining an understanding of internal control.

Which of the following is a compliance element of the National Greenhouse Energy Reporting (NGER)audit framework?

Before a performance audit for effectiveness can be performed, there must be:

Independence of internal auditors is enhanced appropriately by having the internal audit department report to the:

An accountant's report expressing an opinion on an entity's internal control should:

Under Australia's National Greenhouse and Energy Reporting Act 2007, the regulator can order compliance audits in two ways.Identify and describe them.

The Institute of Internal Auditors Practice Standards regarding attributes include four categories of guidance that encompass both financial and operational auditing.List these categories of the Attribute Standards.

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Filters

Exam 19: Other auditing and assurance engagements

Performance audits are often categorised as functional, organisational, or special assignments.

To maximize its effectiveness, to whom should the internal audit department report?

Describe the five types of reports that might be issued by an auditor of a service organisation (service auditors).

Performance auditing is the review of an organisation for efficiency and effectiveness.Discuss what is meant by the terms (1)'effectiveness' and (2)'efficiency'.

The use of negative assurances is inappropriate in review reports.

Government auditors-general have a mandate to conduct:

Examination attestation engagements result in a conclusion that is in a positive form, whereas review attestation engagements result in a conclusion in the form of a negative assurance.

A non-audit engagement in which the accountant undertakes to present, in the form of financial statements, information that is the representation of management, without undertaking to express any assurance on the statements is called a review engagement.

A factual conclusion with limited distribution results from:

A typical objective of a performance audit is to determine whether an entity's:

Which one of the following statements regarding types of performance audits is False?

The two most important qualities for an internal auditor to possess are independence and competence.

Discuss three major differences between performance auditing and financial auditing.

A financial statement review includes obtaining an understanding of internal control.

Which of the following is a compliance element of the National Greenhouse Energy Reporting (NGER)audit framework?

Before a performance audit for effectiveness can be performed, there must be:

Independence of internal auditors is enhanced appropriately by having the internal audit department report to the:

An accountant's report expressing an opinion on an entity's internal control should:

Under Australia's National Greenhouse and Energy Reporting Act 2007, the regulator can order compliance audits in two ways.Identify and describe them.

The Institute of Internal Auditors Practice Standards regarding attributes include four categories of guidance that encompass both financial and operational auditing.List these categories of the Attribute Standards.

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Filters