ACCY 501 TEST 1 EXAM QUESTIONS AND
ANSWERS 100% PASS 2026 EDITION
Internal audit does what? - ANS evaluates and improves risk management, control, and
governance
things internal audit does vs does not do - ANS internal audit evaluates and improves
processes but does not guide or lead them
Governance - ANS process conducted by the board of directors to authorize, direct, and
oversee mgmt toward the achievement of the organization's objectives
risk management - ANS process conducted by management to understand and deal with
uncertainties that could affect the ability of the organization to achieve its objectives
control - ANS process conducted by mgmt to mitigate risks to an acceptable level
accounting - ANS collection, classification, summarization, and communication of financial
data as they affect and represent a given entity
auditing - ANS review the measurements and communications of accounting for propreity;
analytical but not constructive
@COPYRIGHT 2026 ALLRIGHTS RESERVED 1
, financial accounting intended audience - ANS non-insiders
managerial accounting intended audience - ANS insiders- managers
tax intended audience - ANS government
audit intended audience - ANS gov, non insiders, insiders
3 phases of internal audit - ANS planning
performing and evaluating
communicating outcomes
planning phase of internal audit - ANS obtain an understanding of the auditee or customer
set objectives
determine required evidence
decide nature, extent and timing of audit tests
performing and evaluating - ANS application of specific audit procedures
document procedures and results
evaluate the evidence to reach conclusions and give practical advice
communicating outcomes - ANS accurate, objective, clear, concise, constructive, complete,
and timely
@COPYRIGHT 2026 ALLRIGHTS RESERVED 2
ANSWERS 100% PASS 2026 EDITION
Internal audit does what? - ANS evaluates and improves risk management, control, and
governance
things internal audit does vs does not do - ANS internal audit evaluates and improves
processes but does not guide or lead them
Governance - ANS process conducted by the board of directors to authorize, direct, and
oversee mgmt toward the achievement of the organization's objectives
risk management - ANS process conducted by management to understand and deal with
uncertainties that could affect the ability of the organization to achieve its objectives
control - ANS process conducted by mgmt to mitigate risks to an acceptable level
accounting - ANS collection, classification, summarization, and communication of financial
data as they affect and represent a given entity
auditing - ANS review the measurements and communications of accounting for propreity;
analytical but not constructive
@COPYRIGHT 2026 ALLRIGHTS RESERVED 1
, financial accounting intended audience - ANS non-insiders
managerial accounting intended audience - ANS insiders- managers
tax intended audience - ANS government
audit intended audience - ANS gov, non insiders, insiders
3 phases of internal audit - ANS planning
performing and evaluating
communicating outcomes
planning phase of internal audit - ANS obtain an understanding of the auditee or customer
set objectives
determine required evidence
decide nature, extent and timing of audit tests
performing and evaluating - ANS application of specific audit procedures
document procedures and results
evaluate the evidence to reach conclusions and give practical advice
communicating outcomes - ANS accurate, objective, clear, concise, constructive, complete,
and timely
@COPYRIGHT 2026 ALLRIGHTS RESERVED 2
