ACC653 f16.quiz1 with solutions.SUMMARY(1).docx - ACC653 F16 Quiz1 Oct.5 2016 QUIZ COVER SHEET version 1 with solutions Part A a The internal auditor

ACC653 f16.quiz1 with solutions.SUMMARY(1).docx - ACC653...

This preview shows page 1 - 3 out of 6 pages.

ACC653 F16 – Quiz1 –Oct.5, 2016 QUIZ 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 page 2. Operational audit 3. Economy and efficiency audit 4. Program audit b. 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 statements 2. Regulatory compliance auditing 3 . Internal auditing– see page ch1 pages 3 4. Operational auditing c. Which of the following terms is used in internal auditing literature to refer to the accomplishment of an enterprise’s objectives? 1. Efficiency 2. Effectiveness – see page ch1 pages 4-5 3. Economy 4. Control d. Which of the following falls outside of the scope of internal auditing? 1. Evaluating management’s efforts to minimize fraud 2. Evaluating the goals and objectives of the enterprise– see page ch1 pages 3 3. Evaluating compliance with environmental legislation 4. Evaluating the efficiency of a company’s manufacturing operations e. 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 4-5 4. 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 fraud 2. Reduction in the cost of the annual external audit 3. Increased confidence in the organization’s risk management, control, and governance processes - see page 12&13 of ch1 4. Increased confidence that the organization is complying with all laws and regulations g. A systematic and disciplined approach in planning an audit engagement includes: 1. obtaining an understanding of the auditee/customer 2. setting the engagement objectives 3. determining the required evidence 4. all of the above – see page 6 of ch1 h. Which of the following statements is not true about business objectives? 1) business objectives represent targets of performance 1
Image of page 1
2) establishing meaningful business objectives is a prerequisite to effective internal control 3) establishing meaningful business objectives is a key component of the management process 4) 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?
Image of page 2
Image of page 3

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture