Audit Final Exam
What is the best approach for obtaining feedback from engagement clients on the
quality of internal audit work? - Answer Provide questionnaires to engagement clients at
the beginning of each engagement and request that the clients complete and return
them after the engagements.
In a well-developed management environment, the internal audit activity reports results
to whom? - Answer reports the results of an audit engagement to line management as
well as to senior management.
If an auditors preliminary evaluation of internal controls results in an observation that
controls may be inadequate, the next step is to: - Answer Expand audit work prior to the
preparation of an engagement final communication.
Several levels of management are interested in the results of an engagement performed
in the marketing department. What is the best method of communicating the results of
the engagement? - Answer write a communication to the marketing management and
give a summary communication to the other management levels
according to the standards, when should a signed report be issued? - Answer at the
conclusion of an engagement
writing an engagement work program most likely occurs at which stage of the
engagement? - Answer during the planning stage
the scope statement of an engagement communication should - Answer identify the
activities reviewed and describe the nature and extent of the work performed.
When reviewing engagement WORKING PAPERS, the primary responsibility of an
engagement supervisor is to determine that - Answer working papers adequately
SUPPORT the engagement observations, conclusions, and recommendations.
The Chief Audit Executive is responsible for engagement supervision. the most
important form of supervision during the FIELD WORK phase of engagement involves -
Answer ensuring that the approved engagement work program is completed unless
changes are justified and authorized.
While planning an engagement, an internal auditor establishes engagement objectives
to describe what is to be accomplished. Which of the following is a key ISSUE to
consider in developing engagement objectives? - Answer Risks associated with the
activities to be reviewed.
, Which statement most accurately describes how criteria are established for use by
internal auditors in determining whether goals and objectives have been accomplished?
- Answer Mangement is responsible for establishing criteria. (not internal auditors)
Avoiding unnecessary technical language is best associated with which quality of
communication addressed in the standards? - Answer CLEAR. (Use simple words)
An auditor experienced in air-quality issues discovered a significant lack of knowledge
about legal requirements for air emissions while interviewing with the manager. The
auditor should do what - Answer take note of the weakness and direct additional
questions to determine the potential effect of the lack of knowledge.
Field work is a systematic process of objectivity gathering information about an entity's
operations, evaluating it, and determining whether those operations meet acceptable
standards. which of the following is NOT part of the work performed during field work? -
Answer Developing a written engagement work program
Scope Statements for assurance engagements may include which of the following?
1. Boundaries of the process
2. Areas that are within the scope and those that are excluded
3. Time frame limitations
4. Final report distribution - Answer 1, 2, and 3 only
Which paragraph should be characterized as the attribute in the standards as
CONDITION - Answer "The production department produces an average of 25 unites
per worker per shift. The defect rate is 1%.
one of the primary roles of an engagement work program is to - Answer serve as a tool
for planning and conducting engagement work
all of the following are acceptable criteria on which an internal audit may be based
EXCEPT - Answer management cooperation with audit activities
which of the following should NOT be one of the primary reasons why an internal
auditor may communicate sensitive information outside the normal chain of command? -
Answer the internal auditor does not agree with how the board or directors or
management may correct the problem.
Which of the following is NOT an objective of the EXIT MEETING for an engagement
performed by the internal auditors? - Answer identity concerns for future engagements
communication skills are important to internal auditors. the internal auditor should be
able to effectively convey all of the following to an engagement client EXCEPT - Answer
risk assessment used in selecting the area for engagement investigations
What is the best approach for obtaining feedback from engagement clients on the
quality of internal audit work? - Answer Provide questionnaires to engagement clients at
the beginning of each engagement and request that the clients complete and return
them after the engagements.
In a well-developed management environment, the internal audit activity reports results
to whom? - Answer reports the results of an audit engagement to line management as
well as to senior management.
If an auditors preliminary evaluation of internal controls results in an observation that
controls may be inadequate, the next step is to: - Answer Expand audit work prior to the
preparation of an engagement final communication.
Several levels of management are interested in the results of an engagement performed
in the marketing department. What is the best method of communicating the results of
the engagement? - Answer write a communication to the marketing management and
give a summary communication to the other management levels
according to the standards, when should a signed report be issued? - Answer at the
conclusion of an engagement
writing an engagement work program most likely occurs at which stage of the
engagement? - Answer during the planning stage
the scope statement of an engagement communication should - Answer identify the
activities reviewed and describe the nature and extent of the work performed.
When reviewing engagement WORKING PAPERS, the primary responsibility of an
engagement supervisor is to determine that - Answer working papers adequately
SUPPORT the engagement observations, conclusions, and recommendations.
The Chief Audit Executive is responsible for engagement supervision. the most
important form of supervision during the FIELD WORK phase of engagement involves -
Answer ensuring that the approved engagement work program is completed unless
changes are justified and authorized.
While planning an engagement, an internal auditor establishes engagement objectives
to describe what is to be accomplished. Which of the following is a key ISSUE to
consider in developing engagement objectives? - Answer Risks associated with the
activities to be reviewed.
, Which statement most accurately describes how criteria are established for use by
internal auditors in determining whether goals and objectives have been accomplished?
- Answer Mangement is responsible for establishing criteria. (not internal auditors)
Avoiding unnecessary technical language is best associated with which quality of
communication addressed in the standards? - Answer CLEAR. (Use simple words)
An auditor experienced in air-quality issues discovered a significant lack of knowledge
about legal requirements for air emissions while interviewing with the manager. The
auditor should do what - Answer take note of the weakness and direct additional
questions to determine the potential effect of the lack of knowledge.
Field work is a systematic process of objectivity gathering information about an entity's
operations, evaluating it, and determining whether those operations meet acceptable
standards. which of the following is NOT part of the work performed during field work? -
Answer Developing a written engagement work program
Scope Statements for assurance engagements may include which of the following?
1. Boundaries of the process
2. Areas that are within the scope and those that are excluded
3. Time frame limitations
4. Final report distribution - Answer 1, 2, and 3 only
Which paragraph should be characterized as the attribute in the standards as
CONDITION - Answer "The production department produces an average of 25 unites
per worker per shift. The defect rate is 1%.
one of the primary roles of an engagement work program is to - Answer serve as a tool
for planning and conducting engagement work
all of the following are acceptable criteria on which an internal audit may be based
EXCEPT - Answer management cooperation with audit activities
which of the following should NOT be one of the primary reasons why an internal
auditor may communicate sensitive information outside the normal chain of command? -
Answer the internal auditor does not agree with how the board or directors or
management may correct the problem.
Which of the following is NOT an objective of the EXIT MEETING for an engagement
performed by the internal auditors? - Answer identity concerns for future engagements
communication skills are important to internal auditors. the internal auditor should be
able to effectively convey all of the following to an engagement client EXCEPT - Answer
risk assessment used in selecting the area for engagement investigations
