Multiple Choice Questions
The following questions deal with internal auditing. Choose the best response.
a. Which of the following is generally considered to be a major reason for establishing an internal auditing function?
(1) To relieve overburdened management of the responsibility for establishing effective systems of internal control.
(2) To ensure that operating activities comply with the policies, plans, and procedures established by management.
(3) To ensure the accuracy, reliability, and timeliness of financial and operating data used in management's decision making.
(4) To evaluate and improve the effectiveness of control processes.
b. The scope of an internal auditing engagement is initially defined by the
(1) Engagement objectives.
(2) Scheduling and time estimates.
(3) Preliminary survey.
(4) Engagement work program.
c. With regard to corrective action on audit results, which of the following is not the internal auditor's responsibility?
(1) Soliciting auditees' suggestions for corrective actions.
(2) Recommending possible alternative corrective actions.
(3) Directing the corrective actions.
(4) Determining that the corrective actions are responsive to the audit results.
(5) Evaluating new policy statements to determine whether they address the unsatisfactory conditions disclosed in the audit results.