AUI 3703 ASSIGNMENT 1

1.1 The internal audit activity should be ... 1 risk based. 2 materiality based. 3 variance based. 4 compliance based. 1.2 Which of the following activities are not presumed to impair the objectivity of an internal auditor? 1 Recommending standards of control for a new information system application. 2 Drafting procedures for running a new computer application to ensure that proper controls are installed. 3 Performing reviews of procedures for a new computer application before it is installed. 4 All of the above. 1.3 Assuming that the internal auditing staff possesses the necessary experience and training, which one of the following tasks is the most appropriate for an internal audit staff member to undertake? 1 Substitute for the accounts payable supervisor while they are on sick leave. 2 Determine the profitability of alternative investment acquisitions and select the best option. 3 As part of an evaluation team, review vendor accounting software controls and rank according to exposures. 4 Participate in an internal audit of the accounting department shortly after transferring from the accounting department. This study source was downloaded by from CourseH on :49:00 GMT -05:00 This study resource was shared via CourseH 1.4 An internal auditor fails to discover an employee fraud during an assurance engagement. The non-discovery is most likely to suggest a violation of the International Standards for the Professional Practice of Internal Auditing (IPPF) if it was the result of… 1 failure to perform a detailed review of all transactions in the area. 2 determination that any possible fraud in the area would not involve a material amount. 3 determination that the cost of extending procedures in the area would exceed potential benefits. 4 assuming that the internal controls in the area were adequate and effective. 1.5 In evaluating the effectiveness and efficiency with which resources are employed, an internal auditor is responsible for… 1 determining the extent to which adequate operating criteria have been established. 2 verifying the existence of assets. 3 reviewing the reliability of operating information. 4 verifying the accuracy of asset valuation. 1.6 Internal auditors perform both assurance engagements and consulting engagements. Which one of the following alternatives would be classified as an assurance engagement? 1 Examining whether control procedures are mitigating the risks identified. 2 Conducting control self-assessment training. 3 Assisting in developing and drafting policies. 4 Providing advice to management on risk management, control and governance issues. 1.7 An internal auditor is assigned to investigate the economy of operations in a certain section. She is likely to focus her audit procedures on determining the relationship between… 1 actual inputs and planned inputs. 2 planned inputs and planned outputs. 3 actual inputs and planned outputs. 4 actual outputs and planned outputs. This study source was downloaded by from CourseH on :49:00 GMT -05:00 This study resource was shar