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    The document contains excerpts from the Gleim CIA review materials covering topics related to internal auditing standards and principles. It defines key terms like risk, objectives of internal auditing, and the role of the internal audit function. It also addresses the types of standards that apply, components of governance and risk management, and how internal auditors contribute to organizational assurance and improvement.

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    The document contains excerpts from the Gleim CIA review materials covering topics related to internal auditing standards and principles. It defines key terms like risk, objectives of internal auditing, and the role of the internal audit function. It also addresses the types of standards that apply, components of governance and risk management, and how internal auditors contribute to organizational assurance and improvement.

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    156 views3 pages

    Module 13 Reviewer Questions

    Uploaded by

    Unnamed homosapien
    The document contains excerpts from the Gleim CIA review materials covering topics related to internal auditing standards and principles. It defines key terms like risk, objectives of internal auditing, and the role of the internal audit function. It also addresses the types of standards that apply, components of governance and risk management, and how internal auditors contribute to organizational assurance and improvement.

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    of 3

    [1] Gleim #: 1.1.

    1 -- Source: CIA 597 1-60


    The purposes of the Standards include all of the following except

    A. Establishing the basis for the measurement of internal audit performance.


    B. Guiding the ethical conduct of internal auditors.
    C. Stating basic principles that represent the practice of internal auditing as it should be.
    D. Fostering improved organizational processes and operations.

    [2] Gleim #: 1.1.2 -- Source: CIA 1196 III-30

    The proper organizational role of internal auditing is to

    A. Assist the external auditor in order to reduce external audit fees.


    B. Perform studies to assist in the attainment of more efficient operations.
    C. Serve as the investigative arm of the board.
    D. Serve as an independent, objective assurance and consulting activity that adds value to operations.
    [4] Gleim #: 1.1.4 -- Source: Publisher

    Internal audit activities may involve which of the following?

    A. Assurance services.
    B. Consulting services.
    C. Both assurance and consulting services.
    D. Neither assurance nor consulting services.

    [5] Gleim #: 1.1.5 -- Source: Publisher

    Which Standards apply to organizations and individuals performing specific types of internal auditing services?

    A. Performance Standards.
    B. Attribute Standards.
    C. Implementation Standards.
    D. All of the Standards listed in the other answer choices.
    [7] Gleim #: 1.1.7 -- Source: CIA 591 I-1

    Which of the following best describes the purpose of the internal audit activity?

    A. To add value and improve an organization’s operations.


    B. To assist management with the design and implementation of risk management and control systems.
    C. To examine and evaluate an organization’s accounting system as a service to management.
    D. To monitor the organization’s internal control system for the external auditors.

    [8] Gleim #: 1.1.8 -- Source: CIA R98 I-37

    The function of internal auditing, as related to communicating results, is to

    A. Ensure compliance with reporting procedures.


    B. Review the expenditure items and match each item with the expenses incurred.
    C. Determine whether any employees are expending funds without authorization.
    D. Identify inadequate controls that increase the likelihood of unauthorized expenditures.

    [9] Gleim #: 1.2.9 -- Source: Publisher

    The Standards consist of three types of standards. Which standards apply to the characteristics of organizations and
    parties providing internal auditing services?

    A. Implementation Standards.
    B. Performance Standards.
    C. Attribute Standards.
    D. Independence Standards.

    [15] Gleim #: 1.3.15 -- Source: Publisher

    Internal auditors need to ascertain the extent to which management has established adequate criteria to determine
    whether goals and objectives have been accomplished. For this purpose, which of the following actions may be
    appropriate?

    I. Determining whether operating and program goals and objectives conform to those of the organization
    II. Reviewing operations to ascertain the extent to which results are consistent with established goals and objectives
    III. Working with management to develop appropriate control evaluation criteria

    A. I only.
    B. I and II only.
    C. I, II, and III.
    D. II only.

    [18] Gleim #: 1.4.18 -- Source: Publisher

    Internal auditing is an assurance and consulting activity. An example of an assurance service is a(n)

    A. Advisory engagement.
    B. Facilitation engagement.
    C. Training engagement.
    D. Compliance engagement.

    [19] Gleim #: 1.4.19 -- Source: Publisher

    The work of the internal audit activity includes evaluating and contributing to the improvement of risk management
    systems. Risk is

    I. The negative effect of events certain to occur


    II. Measured in terms of impact
    III. Measured in terms of likelihood

    A. I only.
    B. I and II only.
    C. II and III only.
    D. I, II, and III.

    [21] Gleim #: 1.4.21 -- Source: CIA 581 I-5

    A major reason for establishing an internal audit activity is to

    A. Relieve overburdened management of the responsibility for establishing effective controls.


    B. Safeguard resources entrusted to the organization.
    C. Ensure the reliability and integrity of financial and operational information.
    D. Evaluate and improve the effectiveness of control processes.

    [22] Gleim #: 1.4.22 -- Source: Publisher

    What is the most accurate term for the procedures used by the board to oversee activities performed to achieve
    organizational objectives?

    A. Governance.
    B. Control.
    C. Risk management.
    D. Monitoring.

    [23] Gleim #: 1.4.23 -- Source: Publisher


    The actions taken to manage risk and increase the likelihood that established objectives and goals will be achieved are
    best described as

    A. Supervision.
    B. Quality assurance.
    C. Control.
    D. Compliance.
    [28] Gleim #: 1.4.28 -- Source: Publisher

    Internal auditors should be objective. Objectivity

    A. Requires internal auditors not to subordinate their judgment on audit matters to that of others.
    B. Is required only in assurance engagements.
    C. Is managed at the individual auditor, engagement, functional, and organizational levels.
    D. Prohibits internal auditors from providing consulting services relating to operations for which they had
    previous responsibility.
    [29] Gleim #: 1.4.29 -- Source: Publisher

    Freedom from conditions that threaten objectivity or the appearance of objectivity is


    A. Control.
    B. Compliance.
    C. Independence.
    D. Avoidance of conflicts of interest.

    27] Gleim #: 1.4.27 -- Source: Publisher

    What are the policies, procedures, and activities that are part of a control framework, designed to ensure that risks are
    contained within the established risk tolerances?

    A. Risk management process.


    B. Internal audit activities.
    C. Control processes.
    D. Governance process.

    [30] Gleim #: 1.4.30 -- Source: Publisher

    The internal audit activity has a role in an organization’s governance process. The internal audit activity most directly
    contributes to this process by

    A. Identifying significant exposures to risk.


    B. Evaluating the effectiveness of the risk management system.
    C. Promoting continuous improvement of controls.
    D. Evaluating the design of ethics-related activities.

    [31] Gleim #: 1.4.31 -- Source: CIA 594 I-55

    The term “risk” is best defined as the possibility that

    A. An internal auditor will fail to detect a material misstatement that causes financial statements or internal
    reports to be misstated or misleading.
    B. An event could occur affecting the achievement of objectives.
    C. Management will, either knowingly or unknowingly, make decisions that increase the potential liability of
    the organization.
    D. Financial statements or internal records will contain material misstatements.

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