CHAPTER 1

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.

2. 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.

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.

4. AVF Companys new CFO has asked the companys 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:

a. Serve as an independent assurance and consulting activity

designed to add value and improve the companys operations.

b. Assess the companys methods for safeguarding its assets and, as

appropriate, verify the existence of the assets.

c. Review the integrity of financial and operating information and

the methods used to accumulate and report information.

d. Determine whether the companys system of internal controls

provides reasonable assurance that information is effectively and

efficiently communicated to management.

5. Which of the following statements is not true about business

objectives?

a. Business objectives represent targets of performance.

b. Establishing meaningful business objectives is a prerequisite to

effective internal control.

c. Establishing meaningful business objectives is a key component of

the management process.

d. Business objectives are managements means of employing

resources and assigning responsibilities.

6. Within the context of internal auditing, assurance 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

organizations operations.

c. Professional activities that measure and communicate financial

and business data.

d. Objective evaluations of compliance with policies, plans,

procedures, laws, and regulations.

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 guidance within the IPPF?

a. The Definition of Internal Auditing.

b. The Standards.

c. Supplemental guidance.

d. None of the above.

9. The Internal Audit Foundation exists to help audit leaders,

practitioners, students, and academics experience continuous growth

in their careers to propel them to become:

a. Strong assurance providers.

b. Trusted advisors.

c. Independent outside auditors.

d. CAEs.

10. Which of the following is one of the 5 Cs essential to success as an

internal auditor?

a. Courage.

b. Consistency.

c. Collaboration.

d. Candidness.

11. Which of the following is a framework that can help individual

internal auditors and internal audit functions assess their current

competency levels and identify areas for improvement?

a. Internal Control Integrated, Framework.

b. International Professional Practices Framework.

c. The Global Internal Auditor Competency Framework.

d. Enterprise Risk Management Framework.

12. Internal auditors must have competent interpersonal skills. Which of

the following does not represent an attribute of interpersonal skills?

a. Communication.

b. Leadership.

c. Project management.

d. Team capabilities.

13. While planning an internal audit, the internal auditor obtains

knowledge about the auditee to, among other things:

a. Develop an attitude of professional skepticism about

managements assertions.

b. Develop an understanding of the auditees objectives and risks.

c. Make constructive suggestions to management concerning internal

control improvements.

d. Evaluate whether misstatements in the auditees performance

reports should be communicated to senior management and the

audit committee.

14. Which of the following is the premier certification sponsored by The

IIA?

a. Certification in Control Self-Assessment.

b. Certified Internal Auditor.

c. Certification in Risk Management Assessment.

d. Certified Information Systems Auditor.

15. Which of the following is the ultimate position of a career internal

auditor?

a. CEO.

b. CFO.

c. CRO.

d. CAE.