Chap021 - Chapter 21 Internal Operational and Compliance...

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Chapter 21 - Internal, Operational, and Compliance Auditing 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. True False 2. The first internal auditors were primarily concerned with operational auditing. True False 3. The passage of the Foreign Corrupt Practices Act increased the demand for internal auditing. True False 4. Evaluation of internal control is one of the general sections of the IIA's Standards of the Professional Practice of Internal Auditing . True False 5. In operational auditing, the preliminary survey serves as a guide for the development of the audit program. True False 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. True False 21-1
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Chapter 21 - Internal, Operational, and Compliance Auditing 7. Operational audits are primarily concerned with whether an organization follows appropriate laws and regulations. True False 8. Compliance procedures are tests of an organization's controls. True False 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. True False 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. True False 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. 21-2
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Chapter 21 - Internal, Operational, and Compliance Auditing 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. 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 is called a(an): A. Compilation. B. Consultation. C. Operational Audit. D. "Yellow Book" audit. 14. An audit in accordance with the Single Audit Act does not involve reporting upon: A. Compliance with provisions of laws that may have a direct and material affect on each major federal financial assistance program.
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This note was uploaded on 04/06/2011 for the course ECON 3332 taught by Professor Craig during the Spring '11 term at Rensselaer Polytechnic Institute.

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Chap021 - Chapter 21 Internal Operational and Compliance...

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