Dagohoy Q1
Dagohoy Q1
2 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
3. Which of the following statements are NOT true regarding assurance and consulting services?
a, Both services include a three-way relationship between users, IAS, and auditees or customers.
b. In •assurance engagements, IAS take responsibility for ensuring that the nature and scope of the
engagement are aligned with user interests
c. Both services work toward improving the organization's governance, risk management, and control
processes
d. In consulting services, the customer is involved in determining the nature and scope of the
engagement.
5. Support from which persons or combination of persons listed below is most important to the success of the
internal audit activity?
6. Who is ultimately responsible for determining that the objectives for an internal audit engagement have been
met?
7. Which of the following is not a key components of the definition of internal auditing
c. Evaluating and improving the effectiveness of risk management, control, and governance processes.
d. Assurance and consulting activity designed to add value and improve operations.
b. Safeguarding of assets.
d. Ascertaining the extent which management has established criteria to determine whether objectives
have been accomplished.
9. Which one is not the internat auditor's assurance responsibility to achieve organizations strategy,
operational, financial and compliance objectives
a. Assurance on Governance
b. Assurance on Risk
d. Assurance on Controls
10. The following statements relate to the rotes of internal aucfitors, Which of the following is incorrect?
a. Based on the results of the rtsk assessment, the internal auditors evaluate the adequacy and
effectiveness of how risks are identified and managed.
b. Internal auditors also assess other aspects such as ethics and values within the organ(zation,
performance management, communication of risk and control information within the organization
in order to facilitate a good governance process.
c. Internal auditors are expected to provide recommendations for improvement in those areas where
opportunities or deficiencies are identified.
d. While Internal auditors are responsible for Internal controls, the management provides assurance
to the board and the audit committee that internal controls are effective and working as intended.
11. One of the objectives of internal audit activity to add value to the organization. Which of the following
statements appropriately describe the role of internal audit activity in adding value to the organization?
a. An effective internal audit activity (s a valuable resource for management and the board or its
equivalent, and the audit committee due to its understanding of the organization and its culture,
operations, and risk profile.
b. The objectivity, skills, and knowledge of competent internal auditors can significantly add value to
an organization's internal control, risk management, and governance processes.
c. An effective internal audit activity can provide assurance to other stakeholders such as regulators,
employees, providers of finance, and shareholders.
d. All of the statements are correct
12.Independence permits internal auditors to render impartial and unbiased judgments. The best way to achieve
independence is through
a. Individual knowledge and skills
d. An executive is not expected to make judgments in the best interest of the company.
14.A conflict of interest exists when a given decision maker (i.e.; Juan) and another person (i.e., Pedro) are in
the following situation:
a. Juan has to exercise judgement in Pedro's behalf