Test Questions Chapter 210

Test Questions Chapter 210 - Chapter 21 Internal,...

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Chapter 21 Internal, Operational, and Compliance Auditing True/False Questions 1. The work of internal auditors is primarily for the benefit of management and the board of directors. Answer: True Difficulty: Easy 2. The first internal auditors were primarily concerned with operational auditing. Answer: False Difficulty: Medium 3. The passage of the Foreign Corrupt Practices Act increased the demand for internal auditing. Answer: True Difficulty: Easy 4. Evaluation of internal control is one of the general sections of the IIA's Standards of the Professional Practice of Internal Auditing . Answer: False Difficulty: Hard 5. In operational auditing, the preliminary survey serves as a guide for the development of the audit program. Answer: True Difficulty: Medium 6. When no weaknesses in internal control are discovered during an operational audit, the appropriate report will be either standard unqualified or unqualified with explanatory language. Answer: False Difficulty: Medium 7. Operational audits are primarily concerned with whether an organization follows appropriate laws and regulations. Answer: False Difficulty: Medium 8. Compliance procedures are tests of an organization's controls. Answer: False Difficulty: Hard 66 Whittington, Principles of Auditing, Fifteenth Edition
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Chapter 21 Internal, Operational, and Compliance Auditing 9. In an audit in accordance with Government Auditing Standards , the auditors are required to perform additional compliance procedures beyond those required by generally accepted auditing standards. Answer: False Difficulty: Hard 10. In an audit in accordance with the Single Audit Act of 1984, the auditors must test compliance with the significant requirements of all major programs. Answer: True Difficulty: Medium Multiple Choice Questions 11. When auditing an entity's financial statements in accordance with Government Auditing Standards (the “Yellow Book”), an auditor is required to report on: I. Noteworthy accomplishments of the program. II. The scope of the auditor's testing of internal controls. A) I only. B) II only. C) Both I and II. D) Neither I nor II. Answer: B Difficulty: Hard Source: AICPA 12. When auditing an entity's financial statements in accordance with Government Auditing Standards (the “Yellow Book”), an auditor is required to report on: I. Recommendations for actions to improve operations. II. The scope of the auditor's tests of compliance with laws and regulations. A) I only. B) II only. C) Both I and II. D) Neither I nor II. Answer: B Difficulty: Hard Source: AICPA 67 Whittington, Principles of Auditing, Fifteenth Edition
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Chapter 21 Internal, Operational, and Compliance Auditing 13. A comprehensive examination of an operating unit or a complete organization to evaluate its systems, controls, and performance, as measured by management's objectives. A) Compilation.
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This note was uploaded on 02/27/2011 for the course FINA 4318 taught by Professor Peilung during the Spring '10 term at University of Texas at Austin.

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Test Questions Chapter 210 - Chapter 21 Internal,...

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