MULTIPLE-CHOICE QUESTIONS Select the best answer for each of the following questions Which of the following statements is not true about business objectives? a. Business objectives represent targets of s. 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 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 management's objectives. d. All of the above. Assurance, Insight, and Objectivity comprise: a. The mission of internal auditing b. The three lines of defense model. means of employing resources and assigning responsibilities. Within the context of internal auditing, assurance services are best defined as: a. Objective examinations of evidence for the 2. 6. c. The objectives of internal auditing. d. The value proposition. purpose of providing independent assessments. b. Advisory services intended to add value and improve an organization's operations c. Professional activities that measure and 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. 3. communicate financial and business data. d. Objective evaluations of compliance with policies, plans, procedures, laws, and regulations. Which of the following is mandatory guidance within the IPPF? 7. 4. AVF Company's new CFO has asked the compa CAE to meet with him to discuss the role of the internal audit function. The CAE should inform tie CFO that the overall responsibility of internal audit is to: mplementation guidance. b. Supplemental guidance. c. The value proposition. d. The core principles. a. Serve as an independent assurance and consulting Which of the following is recommended guidance activity designed to add value and improve the8. company's operations. 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. c. Review the integrity of financial and operating information and the methods used to accumulate and report information. d. Determine whether the company's system of internal controls provides reasonable assurance that information is effectively and efficiently communicated to management. 1.24 INTERNAL AUDITING, ASSURANCE & ADV SORY SERVCES