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Unformatted text preview: Chapter 9 MULTIPLE CHOICE 1. Which characteristics below is not a characteristic of auditing? a) evidence collection b) establishing audit criteria c) objectivity d) systems development 2. Auditing involves the a) collection, review, and documentation of audit evidence. b) planning and verification of economic events. c) collection of audit evidence and approval of economic events. d) testing, documentation, and certification of audit evidence. 3. The purpose of an internal audit is a) to evaluate the adequacy and effectiveness of company's internal controls. b) to determine the extent to which assigned responsibilities are actually carried out. c) to collect evidence on whether the company is continuing as a going concern. d) A and B only 4. The type of audit in which the primary responsibility of the auditors is the management of the organization is a) an external audit. b) a governmental audit. c) an internal audit. d) a public audits. 5. What is not a typical responsibility of an internal auditor? a) helping management to improve organizational effectiveness b) assisting in the design and implementation of an AIS c) preparation of the company's financial statements d) implementing and monitoring of internal controls 6. The Institute of Internal Auditors (IIA) has established five audit scope standards that outline the internal auditor's responsibilities. Which standard below deals with the principles of reliability and integrity? a) determining whether the systems are designed to comply with operating and reporting policies b) review of how assets are safeguarded and verification of their existence as appropriate c) review of company operations and programs to determine whether they are being carried out as planned d) review of operating and financial information and how it is identified, measured, classified, and reported 7. The three different types of internal audits commonly performed today are a) internal, external, defense contracting. b) financial, operational, information systems. c) financial, operational, management. d) internal, external, public. 8. There are different types of internal audit work. Which type of work listed below is not typical of internal auditors? a) operational and management audits b) information system audits c) financial statement audit d) financial audit of accounting records 9. The __________ audit examines the reliability and integrity of accounting records. a) financial b) informational c) information systems d) operational 10. The __________ audit reviews the general and application controls of an AIS to assess its compliance with internal control policies and procedures and its effectiveness in safeguarding assets....
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This note was uploaded on 03/21/2011 for the course ECON 202085 taught by Professor Mohammad during the Spring '11 term at University of Jordan.
- Spring '11