Lecture 1 – Chapter 1 all

Of potential risk q 23 audit memoranda

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Unformatted text preview: urs when: a) Surplus funds are invested to obtain higher rates of return b) Budgets are performed and regularly checked against actual figures by management c) Financial statements and transactions are manipulated in order to influence perple’s perceptions of the performance of the entity d) Directors hold discussions with managers Q 9. With changes to the regulatory requirements over the yeats companies are now: a) More inclined to engage and rely on the services provided by internal auditors b) Losing confidence in internal auditors c) Preference has not changed over the yeats either for or against the reliance on internal auditors d) More inclined to engage and rely on the services provided by external, rather than internal auditors Q 10. To become a certified internal auditor, a person is not required to a) Pass an entrance examination b) Be a chartered accountant c) Obtain two years experience as an internal auditor d) Al of the above Q 11. Which of the following is not true? Internal auditors should: a) Be involved with the development and implication of the company’s code of conduct b) Assist the external auditors with the performance of any audit activities as requested by the external auditoer c) Have responsibility for the effective and efficient operation of the company’s internal financial controls d) All of the above are true Q 12. Which of these is not an important criterion in assessing the performance of the internal auditor by the external auditor? a) Due professional care b) The age of the auditor c) Technical competence d) All f the above Q 13. Operational auditing evaluates a variety of activities that include: a) Management’s performance b) Managerment’s planning and quality controls systems c) Specific operating activities and departments d) All of the above Q 14. An independent, objective and systematic assessment of publiv sector entities’ programs, resources, information systems, performance measure, monitoring systems and legal and policy compliance is the ANAO’s definition of: a) Performance auditing b) Financial statement auditing c) Operational auditing d) Function auditing Q 15. The Smith Report of January 2003, published by the UK Financial Reporting Council, states that audit committees should: a) Have...
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This document was uploaded on 09/17/2013.

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