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D - D Student 1 The definition of internal audit includes...

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D Student: ___________________________________________________________________________ 1. The definition of internal audit includes all of the following except A. Independent and objective. B. Assurance and consulting activity. C. Determine efficient and effective performance. D. Add value and improve an organization's operations. 2. Of the following: I. More expertise II. Improved control over audit costs III. Improved alignment with company goals The reasons for outsourcing an internal audit include 3. The primary difference between operational auditing and financial auditing is that in operational auditing 4. Independence permits internal auditors to render impartial and unbiased judgments. The best way for internal audit departments to achieve independence is through A. Individual knowledge and skills. B. Organizational knowledge and skills. C. Supervision within the organization. D. Organizational status and individual objectivity. 5. The proper organizational role of internal auditing is to
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6. During an audit of the quality control area, an auditor has identified that a specific product has a 3% failure rate when tested. The specification calls for a failure rate of less than 1.8%. Product failure might lead to customer injury and in turn lawsuits against the company. The auditor has communicated this to management. Which of the following is NOT an acceptable response from management with regard to this risk? A. Management is aware of the risk and has decided the risk is acceptable. B. Management has decided not to continue the manufacture of this product. C . Management has decided to increase the quality control activity to reduce the manufacture of unacceptable product to an acceptably low level. D. Management has decided that the test data is unreliable and has decided not to respond to the audit findings.
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