Question 1

Internal auditors are responsible for providing a report on internal controls that is included in the 10K.

Accepted Answer

A) True 
 B)False

Question 2

A typical objective for internal auditors in the company's sustainability program is for the auditor to

Accepted Answer

A) determine whether the financial statements fairly present the company's expenditures on regulatory compliance. 
B) establish funding requirements for sustainability programs. 
C) assist management in establishing measurements for achieving company objectives. 
D) report on the company's relative success in attaining sustainability objectives. 
A) determine whether the financial statements fairly present the company's expenditures on regulatory compliance. 
B) establish funding requirements for sustainability programs. 
C) assist management in establishing measurements for achieving company objectives. 
D) report on the company's relative success in attaining sustainability objectives.

Question 3

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

Accepted Answer

A) An auditor reviews the procedures for a new electronic data interchange (EDI)connection to a major customer before it is implemented. 
B) A former purchasing assistant performs a review of bidding procedures in the purchasing department four months after being transferred to the internal auditing department. 
C) An auditor recommends controls and performance measures for inclusion in a new contract with an outside service organization for the processing of payroll and employee benefits. 
D) A warehouse employee assists an auditor in verifying the physical inventory of small motors.Question also found in textbook 
A) An auditor reviews the procedures for a new electronic data interchange (EDI)connection to a major customer before it is implemented. 
B) A former purchasing assistant performs a review of bidding procedures in the purchasing department four months after being transferred to the internal auditing department. 
C) An auditor recommends controls and performance measures for inclusion in a new contract with an outside service organization for the processing of payroll and employee benefits. 
D) A warehouse employee assists an auditor in verifying the physical inventory of small motors.Question also found in textbook

Question 4

The reasons for outsourcing an internal audit include

Accepted Answer

A) more expertise only. 
B) more expertise and improved control over audit costs. 
C) improved control over audit costs and improved alignment with company goals. 
D) all of the above 
A) more expertise only. 
B) more expertise and improved control over audit costs. 
C) improved control over audit costs and improved alignment with company goals. 
D) all of the above

Question 5

Under the Single Audit Act of 1984,CPAs and the GAO auditors coordinate their audits such that the government entity receives a "single audit."

Accepted Answer

A) True 
 B)False

Question 6

The IIA auditing standards are classified into three major categories: ___________________,___________________,and _____________________________.
Question also found in study guide

Accepted Answer

attribute standards

Question 7

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

Accepted Answer

request fo

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not required to become a certified internal auditor (CIA)?

Accepted Answer

A) Hold a college degree. 
B) Pass a two-day examination. 
C) Have a full-time position as an internal auditor. 
D) Meet an experience requirement. 
A) Hold a college degree. 
B) Pass a two-day examination. 
C) Have a full-time position as an internal auditor. 
D) Meet an experience requirement.

Question 10

Predication is

Accepted Answer

A) the determination of the method used to enact a fraud. 
B) evidence used in a court of law in proving fraudulent behavior. 
C) a reason to believe that a fraud has occurred. 
D) the amount of restitution that is made to the company when an individual is convicted of a fraud. 
A) the determination of the method used to enact a fraud. 
B) evidence used in a court of law in proving fraudulent behavior. 
C) a reason to believe that a fraud has occurred. 
D) the amount of restitution that is made to the company when an individual is convicted of a fraud.

Question 11

A fraud examination has four main objectives: (1)determining whether a fraud exists,(2)determining ______________________,_________________________________,and ________________________________.
Question also found in study guide

Accepted Answer

its scope ; identify

Question 12

What are the different types of government audits?

Accepted Answer

The types of government audits include (

Question 13

In performing a financial statement audit in accordance with government auditing standards,an auditor is required to report on the entity's compliance with laws and regulations.This report should

Accepted Answer

A) state that compliance with laws and regulations is the responsibility of the entity's management. 
B) describe the laws and regulations with which the entity must comply. 
C) provide an opinion on overall compliance with laws and regulations. 
D) indicate that the auditor does not possess legal skills and cannot make legal judgments. 
A) state that compliance with laws and regulations is the responsibility of the entity's management. 
B) describe the laws and regulations with which the entity must comply. 
C) provide an opinion on overall compliance with laws and regulations. 
D) indicate that the auditor does not possess legal skills and cannot make legal judgments.

Question 14

Which of the following is mostly concerned with the benefits derived from the expenditure of funds?

Accepted Answer

A) Operational auditing. 
B) Performance auditing. 
C) Management auditing. 
D) Financial statement auditing. 
A) Operational auditing. 
B) Performance auditing. 
C) Management auditing. 
D) Financial statement auditing.

Question 15

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

Accepted Answer

A) Determine whether a fraud exists. 
B) Determine who was involved in the fraud. 
C) Determine how the fraud occurred. 
D) Determine the effect on financial statement users. 
A) Determine whether a fraud exists. 
B) Determine who was involved in the fraud. 
C) Determine how the fraud occurred. 
D) Determine the effect on financial statement users.

Question 16

The U.S.Government Accountability Office (GAO)standards do not specifically require a written report in financial statement audits for

Accepted Answer

A) recommendations for actions to improve operations. 
B) all instances of illegal acts that could result in criminal prosecution. 
C) compliance with applicable laws and regulations. 
D) internal control structure and the control risk assessment. 
A) recommendations for actions to improve operations. 
B) all instances of illegal acts that could result in criminal prosecution. 
C) compliance with applicable laws and regulations. 
D) internal control structure and the control risk assessment.

Question 17

The primary difference between operational auditing and financial auditing is that in operational auditing,the auditor

Accepted Answer

A) is concerned only with the audited activity's adherence to company policy and procedures. 
B) is seeking to help management use resources in the most effective manner possible. 
C) starts the process with the financial statements of an activity being audited and works backward to the basic processes involved in producing them. 
D) can use analytical skills and tools that are not necessary in financial auditing. 
A) is concerned only with the audited activity's adherence to company policy and procedures. 
B) is seeking to help management use resources in the most effective manner possible. 
C) starts the process with the financial statements of an activity being audited and works backward to the basic processes involved in producing them. 
D) can use analytical skills and tools that are not necessary in financial auditing.

Question 18

Auditors of governmental units would not be presumed to be independent if they are

Accepted Answer

A) free from sources of personal impairment. 
B) independent under AICPA Code of Professional Conduct rules. 
C) auditing the branch of government to which they are assigned. 
D) elected or appointed and reporting to a legislative body of government. 
A) free from sources of personal impairment. 
B) independent under AICPA Code of Professional Conduct rules. 
C) auditing the branch of government to which they are assigned. 
D) elected or appointed and reporting to a legislative body of government.

Question 19

The GAO emphasizes the risk management in government for the efficient,economical,and effective use of public funds and resources.

Accepted Answer

A) True 
 B)False

Question 20

What are the different types of internal audits?

Accepted Answer

1.Financial audits.

Internal auditors are responsible for providing a report on internal controls that is included in the 10K.

A typical objective for internal auditors in the company's sustainability program is for the auditor to

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

The reasons for outsourcing an internal audit include

Under the Single Audit Act of 1984,CPAs and the GAO auditors coordinate their audits such that the government entity receives a "single audit."

The IIA auditing standards are classified into three major categories: _________,_,and _____________________. Question also found in study guide

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

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

Which of the following is not required to become a certified internal auditor (CIA)?

Predication is

A fraud examination has four main objectives: (1)determining whether a fraud exists,(2)determining ______,_,and ________________. Question also found in study guide

What are the different types of government audits?

In performing a financial statement audit in accordance with government auditing standards,an auditor is required to report on the entity's compliance with laws and regulations.This report should

Which of the following is mostly concerned with the benefits derived from the expenditure of funds?

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

The U.S.Government Accountability Office (GAO)standards do not specifically require a written report in financial statement audits for

The primary difference between operational auditing and financial auditing is that in operational auditing,the auditor

Auditors of governmental units would not be presumed to be independent if they are

The GAO emphasizes the risk management in government for the efficient,economical,and effective use of public funds and resources.

What are the different types of internal audits?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters

Exam 16: Internal Audits, Governmental Audits, and Fraud Examinations

Internal auditors are responsible for providing a report on internal controls that is included in the 10K.

A typical objective for internal auditors in the company's sustainability program is for the auditor to

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

The reasons for outsourcing an internal audit include

Under the Single Audit Act of 1984,CPAs and the GAO auditors coordinate their audits such that the government entity receives a "single audit."

The IIA auditing standards are classified into three major categories: ___________________,___________________,and _____________________________. Question also found in study guide

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

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

Which of the following is not required to become a certified internal auditor (CIA)?

Predication is

A fraud examination has four main objectives: (1)determining whether a fraud exists,(2)determining ______________________,_________________________________,and ________________________________. Question also found in study guide

What are the different types of government audits?

In performing a financial statement audit in accordance with government auditing standards,an auditor is required to report on the entity's compliance with laws and regulations.This report should

Which of the following is mostly concerned with the benefits derived from the expenditure of funds?

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

The U.S.Government Accountability Office (GAO)standards do not specifically require a written report in financial statement audits for

The primary difference between operational auditing and financial auditing is that in operational auditing,the auditor

Auditors of governmental units would not be presumed to be independent if they are

The GAO emphasizes the risk management in government for the efficient,economical,and effective use of public funds and resources.

What are the different types of internal audits?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters

The IIA auditing standards are classified into three major categories: _________,_,and _____________________. Question also found in study guide

A fraud examination has four main objectives: (1)determining whether a fraud exists,(2)determining ______,_,and ________________. Question also found in study guide