Exam 16: Internal Audits governmental Audits and Fraud Examinations

A GAO audit report entitled Aviation Safety: Safer Skies Initiative Has Taken Initial Steps to Reduce Accident Rates by 2007 is most likely a report based on work the auditors performed during a

External auditors accepting engagements to audit federal grants and programs must follow both GAAS and the GAO standards. Question also found in study guide

Auditors are concerned about internal control strengths and weaknesses; fraud investigators are mostly concerned about fraud weaknesses. Question also found in study guide

Auditors are responsible for establishing key measures in order to evaluate the efficiency,economy,and program outputs.

In assessing the objectivity of internal auditors,an independent auditor should

During the audit of the quality control area,an auditor identified that a specific product has a 3 percent failure rate when tested.The specification calls for a failure rate of less than 1.8 percent.Product failure might lead to customer injury and in turn lawsuits against the company.The auditor has communicated this to management.Which of the following is not an acceptable response from management with regard to this risk?

The Standards for the Professional Practice of Internal Auditing of the Institute of Internal Auditors (IIA)does not include the broad category of

The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that

The Government Accountability Office (GAO)is provides auditing standards that are followed by internal auditors and governmental auditors.

CPAs in public practice most often are involved in governmental audits as a result of responding to an agency's ___________________________________. Question also found in study guide

Fraud examiners have four main objectives in performing an investigation.Which of the following is not one of those objectives?

GAO performs three types of government audits: ___________________,____________________ and ____________________ audits. Question also found in study guide

The Single Audit Act established an annual audit for all ____________________ and ____________________ units that spend $_____________________ or more of ____________________ funds. Question also found in study guide

The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that

Which of the following would be considered in determining whether an internal audit department is independent?

Internal auditors should be independent when obtaining evidence in the sense of being free financial relationships such as owning stock.

Following are five cases (1-5)that illustrate different types of audit engagements.In the space provided,indicate the type of audit that would be conducted,the specific auditor who might undertake the engagement,and the auditing standards that would probably apply for the engagement.

Program audits do not include determining

Operational audits do not include determining

Which of the following situations provides the greatest threat to an internal auditor's objectivity?