Exam 21: Internal, Operational, and Compliance Auditing

When no weaknesses in internal control are discovered during an operational audit,the appropriate report will be either standard unqualified or unqualified with explanatory language.

When auditing an entity's financial statements in accordance with Government Auditing Standards (the "Yellow Book"),an auditor is required to report on: I.Recommendations for actions to improve operations. II.The scope of the auditor's tests of compliance with laws and regulations.

Kent is auditing an entity's compliance with requirements governing a major federal financial assistance program in accordance with the Single Audit Act.Kent detected noncompliance with requirements that have a material effect on that program.Kent's report on compliance should express a(an):

Which of the following is not required of an individual seeking to become a certified internal auditor?

For the highest degree of independence the director of internal auditing should report directly to:

A comprehensive examination of an operating unit or a complete organization to evaluate its systems,controls,and performance,as measured by management's objectives is called a(an):

Internal auditing is considered to be part of an organization's:

When auditing an entity's financial statements in accordance with Government Auditing Standards (the "Yellow Book"),an auditor is required to report on: I.Noteworthy accomplishments of the program. II.The scope of the auditor's testing of internal controls.

Operational audits are primarily concerned with whether an organization follows appropriate laws and regulations.

In operational auditing,the preliminary survey serves as a guide for the development of the audit program.

The first internal auditors were primarily concerned with operational auditing.

When performing an audit of a city in accordance with the Single Audit Act,an auditor should adhere to:

A primary purpose of operational auditing standards is to provide:

An operational audit report which deals with the scrap disposal function in a manufacturing company is most likely to address:

The work of internal auditors is primarily for the benefit of management and the board of directors.

The passage of the Foreign Corrupt Practices Act increased the demand for internal auditing.

The scope of an internal audit is initially defined by the:

The internal auditing department provides information about control and quality of performance to:

Which of the following types of audits is designed to determine that an organization has complied with the specific requirements of major financial assistance programs?

In governmental accounting,emphasis is placed on: