1) Auditing involves the A) collection, review, and documentation of audit evidence. B) planning and verification of economic events. C) collection of audit evidence and approval of economic events. D) testing, documentation, and certification of audit evidence. 2) What is not a typical responsibility of an internal auditor? A) Helping management to improve organizational effectiveness. B) Assisting in the design and implementation of an AIS. C) Preparation of the company's financial statements. D) Implementing and monitoring of internal controls. 3) The audit reviews the general and application controls of an AIS to assess its compliance with internal control policies and procedures and its effectiveness in safeguarding assets. A) financial B) information systems C) management D) internal control 4) The purpose of is to determine why, how, when, and who will perform the audit. A) audit planning B) the collection of audit evidence C) the communication of audit results D) the evaluation of audit evidence 5) Organizing the audit team and the physical examination of assets are components of which two separate audit stages? A) Planning; evaluating audit evidence. B) Planning; collecting audit evidence. C) Collecting audit evidence; communicating audit results. D) Communicating audit results; evaluating audit evidence. 6) With regards to an accounting information system, a financial audit is most concerned with A) the system's output. B) the system's input. C) the system's processing. D) the system's storage. 1 Page 7) Colin Thompson is the CEO of DressBarn Incorporated. The board of directors has recently demanded that they receive more assurance that internal controls surrounding the company's information system are effective. Which type of audit would best suit the demands of the board of directors? A) Financial audit. B) Information system audit. C) Operational audit. D) Sustainability audit. 8) Who generally receives the findings and conclusions of an operational audit? A) The board of directors. B) Management C) The external auditor. D) Inland Revenue