The International Auditing and Assurance Standards Board IAASB which is a part

The international auditing and assurance standards

  • Seneca College
  • ACF 653
  • Homework Help
  • leeto
  • 11
  • 100% (5) 5 out of 5 people found this document helpful

This preview shows page 4 - 7 out of 11 pages.

The International Auditing and Assurance Standards Board (IAASB), which is a part of the International Federation of Accountants (IFAC), issues international audit standards adopted by a number of countries.
Background image
Internal Auditing: Assurance and Advisory Services, 3rdEdition. © 2013 by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, FL 32701 USA IS2-5CHAPTER 2THE INTERNATIONAL PROFESSIONAL PRACTICES FRAMEWORK: AUTHORITATIVE GUIDANCE FOR THE INTERNAL AUDIT PROFESSIONIllustrative SolutionsThe International Standards Organization (ISO) sets standards for quality and environmental audits.Standards Australia promulgates standards for risk management and governance processes.The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has issued four frameworks pertaining specifically to internal control and risk management.The Society of Corporate Compliance and Ethics (SCCE) provides guidance for ethics and compliance practitioners.The Health Care Compliance Association (HCCA) provides guidance for compliance professionals specifically operating in the healthcare industry.The Basel Committee on Banking Supervision has specific requirements (referred to as Basel 1 and Basel 2) for internal audits of banking and financial institutions’ risk management and rating systems.
Background image
Internal Auditing: Assurance and Advisory Services, 3rdEdition. © 2013 by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, FL 32701 USA IS2-6CHAPTER 2THE INTERNATIONAL PROFESSIONAL PRACTICES FRAMEWORK: AUTHORITATIVE GUIDANCE FOR THE INTERNAL AUDIT PROFESSIONIllustrative SolutionsMultiple-choice Questions1.Bis the best answer. The introduction to the Standardsstates that the purpose of the Standardsis to provide the basis for measurement of internal audit performance. The Standardsare not designed primarily to promote coordination between external and internal audit, although they do require the chief audit executive (CAE) to share information and coordinate activities with other internal and external providers of relevant assurance and consulting services (Standard 2050). The Standardsalso do not codify existing practice. Instead, they describe internal audit practice as it should be. The Standardsdo not attempt to establish consistency in internal audit practices but do describe what is necessary to be effective.2.Cis the bestanswer. The Code, Definition, and Standardsare mandatory; the Practice Advisories are not.3.A is the best answer. Preparation of a divisional manager’s tax return for a fee would be considered a conflict of interest for an internal auditor and thus impair objectivity (rule 2.1). The other activities are permitted under the Code.
Background image
Image of page 7

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture