1) According to the IPPF, an internal auditor assigned to an audit engagement:

A) Must be an expert in the area being audited

B) Is responsible for detecting fraud

C) Must be proficient and exercise due professional care

D) Must be a Certified Internal Auditor

E) All of the above

2) Internal auditing needs to consider risk in

A) Developing the annual audit plan

B) Conducting audit engagements

C) Providing assurance to the board on the effectiveness of risk management processes

D) All of the above

E) None of the above

3) Which of the following about outsourcing is not true?

A) The organization should consider the risk of performing the function internally and compare it to the risk of

outsourcing

B) The entire risk(s) to the company can be eliminated and transferred to the service provider

C) The level of risk increases when key business operations are outsourced

D) Managing the relationship is more difficult because the service provider may limit the clients ability to observe and

assess controls

E) All of the above are true

4) Which of the following is not a category of objectives of internal control per the COSO Internal Control Framework?

A) Reporting objectives

D) Strategic objectives

B) Operational objectives

C) Compliance objectives

E) All of the above are categories of objectives of internal control

5) Which of the following about how internal auditing adds value is not true?

A) How internal auditing can best add value changes over time

B) Different levels in the organization have different opinions as to how internal auditing can best add value

C) What is considered value add in one organization may not be considered value add in another organization

D) Internal auditing is limited by resources, staff size and expertise in where and how they can add value

E) For any organization consulting is considered to be higher value add than assurance services