Chapter 26 - Chapter 26 Multiple-Choice Questions 1. easy b...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 26 Multiple-Choice Questions 1. easy b The IIA Code of Ethics is based on all but which of the following ethical principles? a. Integrity. b. Independence. c. Competency. d. Confidentiality. 2. easy c Statements on Internal Auditing Standards are issued by the: a. AICPA. b. SEC. c. Internal Auditing Standards Boards. d. Auditing Standards Boards. 3. easy c Internal auditors are responsible to: a. the board of directors. b. management. c. both a and b. d. neither a nor b. 4. easy a Which of the following is not a similarity between external and internal auditors? a. Both must be independent of the company. b. Both must be competent. c. Both use similar methodologies in performing their work. d. Both consider risk and materiality in their work. 5. easy d External auditors consider internal auditors effective if they are: a. independent of the operating units being evaluated. b. competent and well trained. c. have performed relevant audit tests of the internal controls and financial statements. d. all of the above. 6. easy d Auditing standards _______ external auditors to use the internal auditors for direct assistance on the audit. a. discourage b. prohibit c. encourage d. permit 7. easy b The primary source of authoritative literature for doing government audits is the: a. Purple Book. b. Yellow Book. c. Green Book. d. Red Book. Arens/Elder/Beasley
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8. easy c When a state or local government agency receives federal financial assistance, it is subject to the audit requirements of: a Yellow Book Single Audit Act OMB Circular A-133 a. Yes Yes No b. No No Yes c. Yes Yes Yes d. Yes No No 9. easy c Which of the following is not one of the broad categories of operational audits? a. Functional audits. b. Organizational audits. c. Single Audit Act audits. d. Special assignment audits. 10. easy d Which of the following groups could not be involved in an operational audit? a. CPA firms. b. Internal auditors. c. Government auditors. d. None of the above answers is correct; that is, all of the above could be involved. 11. easy b The IIA’s professional practice framework (including its code of ethics and International Standards for the Professional Practice of Internal Auditing) is commonly referred to as the: a. Blue Book. b. Red Book. c. Green Book. d. Yellow Book. 12. easy b The professional organization which is responsible for providing guidance for internal auditors is the: a. APA. b. IIA. c. ABA. d. AIA. 13. easy d The financial auditing standards of the Yellow Book are ______ the 10 GAAS of the AICPA. a. the same as b. quite different from c. incompatible with d. consistent with 14. easy b Which of the following is not one of the three phases in an operational audit? a.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/27/2011 for the course AC555 AC555 taught by Professor Tarbet during the Spring '10 term at Keller Graduate School of Management.

Page1 / 11

Chapter 26 - Chapter 26 Multiple-Choice Questions 1. easy b...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online