Exam 21: Internal, Operational, and Compliance Auditing

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

According to the IIA's Standards, an internal auditor's working papers should be reviewed by the:

In an audit in accordance with the Single Audit Act of 1984, the auditors must test compliance with the significant requirements of all major programs.

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.

Compliance auditing procedures are:

In planning an operational audit, an on-site survey could assist with all of the following, except:

Operational auditing has grown in importance over the last few decades. a. Define operational auditing. b. Who are the major users of operational audit reports. c. List the phases of an operational audit.

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?

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):

The primary purpose of the internal auditors' evaluation of internal control is to:

Under the Single Audit Act, the auditor must apply procedures to test for compliance and test the effectiveness of controls for: Major Programs Non- Major Programs A. Yes Yes B. Yes No C. No Yes D. No No

In an audit in accordance with generally accepted auditing standards, the auditors must test compliance with those laws and regulations that:

The Dodd-Frank Act requires auditors to report on broker-dealer compliance with internal control:

Which of the following is not one of the attribute standards of the IIA's Standards for the Professional Practice of Internal Auditing?

A primary purpose of operational auditing standards is to provide:

An audit in accordance with the Single Audit Act does not involve reporting upon:

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:

Internal auditors are an important part of the internal control structures of all types of organizations. a. Describe the objectives of an internal auditing function. b. Explain two ways that internal auditors may maintain independence with respect to the activities that they audit.