Q1 Functional reporting to the audit committee typically requires the board to do which of the following a Approve the internal audit risk assessment and related audit plan b Approve the organizational structure of the internal audit department c Assess if the internal audit activitys purpose, as defined in the internal audit charter, continues to be adequate to enable the activity to accomplish its objectives d Receive communication from the CFO on the results of internal audit activities Q2 Because of the importance of properly controlling the financial resources of an organization, the financial function should assume full responsibility for the budgetary process This is especially true since financial managers are in the best position to develop realistic forecasts of the needs of the organizations other functions True False Q3 Which of the following statements is false when assurance and consulting services are combined in a single engagement a it is referred to as a blended engagement b it is still referred to as standard assurance engagement c blended engagements are indicated when it is cost effective or otherwise desirable to combine a component of assurance, such as the independent assessment of a process or controls, as well as a component of consulting, such as advising or facilitation blended engagements can be cost effective Q4 Which of the following regarding management standards for the internal audit department is true a Internal auditors sometimes cannot determine the approach and methods used by external auditors b The only expectations the chief audit executive needs to meet to ensure the audit works are those of the internal audit department charte r c External auditors should be independent and cannot rely on the work of internal auditors d The responsibility for maintaining effective internal auditing resides with the organization, unless there is an external service providing internal audit services to the organization

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

Q1. Functional reporting to the audit committee typically requires the board to do which of the following? a. Approve the internal audit risk assessment and

Q1. Functional reporting to the audit committee typically requires the board to do which of the following?

	a.	Approve the internal audit risk assessment and related audit plan.
	b.	Approve the organizational structure of the internal audit department.
	c.	Assess if the internal audit activitys purpose, as defined in the internal audit charter, continues to be adequate to enable the activity to accomplish its objectives.
	d.	Receive communication from the CFO on the results of internal audit activities.

Q2.Because of the importance of properly controlling the financial resources of an organization, the financial function should assume full responsibility for the budgetary process. This is especially true since financial managers are in the best position to develop realistic forecasts of the needs of the organizations other functions.

True

False

Q3. Which of the following statements is false when assurance and consulting services are combined in a single engagement?

it is referred to as a blended engagement

it is still referred to as standard assurance engagement

blended engagements are indicated when it is cost-effective or otherwise desirable to combine a component of assurance, such as the independent assessment of a process or controls, as well as a component of consulting, such as advising or facilitation.

blended engagements can be cost-effective

Q4. Which of the following regarding management standards for the internal audit department is true?

	a.	Internal auditors sometimes cannot determine the approach and methods used by external auditors.
	b.	The only expectations the chief audit executive needs to meet to ensure the audit works are those of the internal audit department charter.
	c.	External auditors should be independent and cannot rely on the work of internal auditors.
	d.	The responsibility for maintaining effective internal auditing resides with the organization, unless there is an external service providing internal audit services to the organization.