1. Which of the following are required of the internal audit function per the Standards?

1. Evaluate the effectiveness of the audit committee annually.

2. Issue an overall opinion on the adequacy of the organization's system of internal controls annually.

3. Obtain an annual representation from management acknowledging management's responsibility for the design and implementation of internal controls to prevent illegal acts.

4. Assess whether the IT governance of the organization sustains and supports the organization's strategies and objectives.

2) To determine what needs to be done regarding follow-up on an assurance engagement the internal audit staff just completed, one would consult:

1. The Attribute Standards: Assurance Services Implementation Standards.

2. The Performance Standards: Consulting Services Implementation Standards.

3. The Attribute Standards: Consulting Services Implementation Standards.

4. The Performance Standards: Assurance Services Implementation Standards.

3. In addition to the Standards, some internal audit departments follow other standards in conducting their work, either because of regulatory requirements or by choice. When these other standards are inconsistent with lIA Standards, what should the audit department do?

A )Follow IIA Standards.

B) Follow the other standards.

C) Follow the standard that is least restrictive.

D) Follow the standard that is most restrictive.

4) True or False: The Implementation Guidance of the IPPF is not organized or linked directly to conformance with Standards.

(A) True

(B False

5) Which of the following would be a violation of The IIA's Code of Ethics?

1. An internal auditor was subpoenaed in a court case in which a joint venture partner claimed to have been defrauded by the auditor's company. The auditor divulged confidential audit information to the court during testimony.

2. During an audit, an internal auditor learned that the company was about to introduce a new product that would revolutionize the industry. Because of the probable success of the new product, the product manager suggested that the internal auditor buy additional stock in the company, which the auditor did.

3. an internal auditor's husband inherited 25,000 shares of company stock when his grandfather died. They have held the stock for more than two years.

4. An internal auditor works weekends doing tax returns for a friend who owns a small CPA firm.

6) Which of the following is/are components of the Standards?

I. Statements.

II. Interpretations.

III. Glossary.

1. I

2. I&II

3. I&III

4. I,II,&III

7) True or False: The Purpose of the IPPF Oversight Council is to represent the interests of stakeholders outside of the IA profession.

True

False

8) An internal auditor provides income tax services during the tax season. For which of the following activities would the auditor most likely be considered in violation of The IA's Code of Ethics?

1. Preparing, for a fee, a division manager's personal tax returns.

2. Appearing on a local radio show to discuss retirement planning and tax issues.

3. Receiving a stipend for teaching an evening tax class at the local junior college.

4. Working on weekends for a friend who has a small CPA firm.