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ACC653 F16 – Quiz1 –Oct.5, 2016QUIZ COVER SHEET – version 1 with solutions______________________________________________________________________________Part A) a. The internal auditor randomly selects participants in the job retraining program for the past year to verify that they had met all the eligibility requirements. This type of audit is best referred to as which of the following?1. Compliance audit– see page ch1 pages 3 bottom of page2. Operational audit3. Economy and efficiency audit4. Program auditb. The work related to the preparation of independent, objective assurance & consulting activity to provided value best describes which of the following?1. External audit of financial statements2. Regulatory compliance auditing3. Internal auditing– see page ch1 pages 34. Operational auditingc. Which of the following terms is used in internal auditing literature to refer to the accomplishment of an enterprise’s objectives?1. Efficiency2. Effectiveness – see page ch1 pages 4-53. Economy4. Controld. Which of the following falls outside of the scope of internal auditing?1. Evaluating management’s efforts to minimize fraud2. Evaluating the goals and objectives of the enterprise– see page ch1 pages 33. Evaluating compliance with environmental legislation4. Evaluating the efficiency of a company’s manufacturing operationse. In the definition of internal auditing, which of the following statements about assurance activities is true?1. They are characterized by two-party reporting.2. They refer only to the activities of the external auditor reporting on the annual financial statements.3. They include reporting on management’s fulfillment of its governance responsibilities. – see page ch1 pages 4-54. They consist mainly of providing advice to management.f. Which of the following is the most important benefit to management of the establishment of an internal auditing department?1. Deterrence and detection of fraud2. Reduction in the cost of the annual external audit3. Increased confidence in the organization’s risk management, control, and governance processes - see page 12&13 of ch14. Increased confidence that the organization is complying with all laws and regulationsg. A systematic and disciplined approach in planning an audit engagement includes:1. obtaining an understanding of the auditee/customer2. setting the engagement objectives3. determining the required evidence4. all of the above – see page 6 of ch1h. Which of the following statements is not true about business objectives?1) business objectives represent targets of performance1
2) establishing meaningful business objectives is a prerequisite to effective internal control3) establishing meaningful business objectives is a key component of the management process4) business objectives are management’s means of employing resources and assigning responsibilities (from page 22 of ch1 MC list)i.Internal auditors must have competent interpersonal skills. Which of the following does not represent an attribute of interpersonal skills?