1. Areas of a company with significant internal control risks, such as IT applications security, general ledger balancing procedures, or the annual physical inventory, would receive relatively lower internal control significance ranking scores.

True False

Question 2. 2. The ____________ is the prime worldwide professional organization for internal auditors, just as the _____________ in the United States, is the professional organization for external auditors.

Institute of Internal Auditors (IIA); American Institute of Certified External Auditors (AICEA) American Institute of Certified Public Accountants (AICPA); American Institute of Certified External Auditors (AICEA) Institute of Internal Auditors (IIA); American Institute of Certified Public Accountants (AICPA) American Institute of Certified Public Auditors (AICPA); American Institute of Certified Public Accountants (AICPA)

Question 3. 3. Internal audit report recommendations should give some consideration to the risks associated with recommended corrective actions when issuing internal audit reports. (Points : 3.33)

True False

Question 4. 4. Internal auditing involves many varied activities such as:

efficiency and reliability of operations deterring and investigating fraud safeguarding assets compliance with laws and regulations all of the above

Question 5. 5. Under the attribute standard for due professional care in IIAs International Standards for the Professional Practice of Internal Auditing, internal auditors must:

take an annual exam consider the use of technology-based audit and other data analysis techniques provide an annual report to the SEC perform continuous risk assessment and report results to outside investors