7:58 4 1 E - MULTIPLE-CHOICE QUESTIONS AVY When .com with The Ca s tle a . De that is Select the best answer for each of the following questions. 5. Which of the following statements is business objectives? ments is not true abor. a. Business objectives represent targets of performance. susiness objectives is a 1. Which of the following are components of the definition of internal auditing? a. Independence and objectivity. b. A systematic and disciplined approach. c. Helping the organization accomplish its objectives. d. All of the above. Assurance, Insight, and Objectivity comprise: a. The mission of internal auditing. b. The three lines of defense model. c. The objectives of internal auditing. d. The value proposition. b. Establishing meaningful business obje prerequisite to effective internal cont internal control c. Establishing meaningful business object key component of the management process d. Business objectives are management's means of employing resources and assigning responsibilities. 3. Independent outside auditors provide financial reporting assurance services primarily for: a. The benefit of third parties. b. Management c. Board of directors. d. The CEO. 6. Within the context of internal auditing, assuran services are best defined as: a. Objective examinations of evidence for the purpose of providing independent assessments. b. Advisory services intended to add value and improve an organization's operations. c. Professional activities that measure and communicate financial and business data. d. Objective evaluations of compliance with policies plans, procedures, laws, and regulations. 4. AVF Company's new CFO has asked the company's CAE to meet with him to discuss the role of the internal audit function. The CAE should inform the CFO that the overall responsibility of internal audit is to: 2. Serve as an independent assurance and consulting activity designed to add value and improve the company's operations. 7. Which of the following is mandatory guidance within the IPPF? a. Implementation guidance. b. Supplemental guidance. c. The value proposition. d. The core principles. 8. Which of the following is recommended guida within the IPPF? a. The Definition of Internal Auditing. b. The Standards. c. Supplemental guidance. d. None of the above. b. Assess the company's methods for safeguarding its assets and, as appropriate, verify the existence of the assets. commended guidance c. Review the integrity of financial and on formation and the methods used to accumulate integrity of financial and operating and report information. d. Determine wheth Determine whether the company's system of ternal controls provides reasonable assurance that information is effectively and efficiently communicated to management