The Public Sector Assurance Sections are guidelines separate and distinct of CICA GAAS for the public sector.
True
False
False
Economy refers to quality and quantity of resources at lowest cost and appropriate times.
True
False
True
Efficiency refers to achievement of the intended objectives.
True
False
False
Effectiveness refers to outputs of resources maximized for the related inputs and inputs minimized for the related outputs.
True
False
False
The Institute of Internal Auditors (IIA) is the Canadian organization that governs the standards, continuing education and professional conduct rules for professional internal auditors.
True
False
False
Why is organizational separation for internal auditors crucial for independence?
Internal auditors need to be separate from management so that they can report results to top management or the board of directors through the audit committee without fear of losing their jobs or losing compensation depending on their findings.
The governing bodies of the public sector may be interested in more than just audited financial statements in order to obtain an adequate picture or report on management performance. What information might the governing bodies also be interested in?
Compliance with legislative and related authorities
Accounting for and safeguarding of assets
Adequacy of management control systems
Economy and efficiency in the administration of resources
Effectiveness of programs.
How can Internal Auditors obtain independence and objectivity in an organization?
Internal auditors report to the audit committee of the board of directors instead of to management, and must have the ability to obtain evidence independently without interference by management.
Distinguish between internal, external, and public sector auditors.
Internal auditors – are auditors employed by organizations and conduct their audits on those same organizations ex. Banks
External auditors – are auditors employed by public accounting firms and audit organizations ex. Price Waterhouse Coopers
Public sector auditors – are auditors employed by the federal, provincial and municipal governments to audit those same governments.
There are 12 different attributes of effectiveness that have been identified that an auditor must examine in performing a value-for-money audit. What are eight of these attributes?
Management direction, relevance, appropriateness, achievement or results, acceptance, secondary impacts, costs and productivity, responsiveness, financial results, working environment, protection of assets, monitoring and reporting.
administrative control:
the plan of organization and all methods and procedures that are concerned mainly with operational efficiency and adherence to managerial policies and usually relate only indirectly to financial records.
Certified Internal Auditors:
persons who have met the Institute of Internal Auditors' criteria for professional CIA credentials.
expanded scope governmental auditing:
auditing that goes beyond an audit of financial reports and compliance with laws and regulations to include economy and efficiency and program results audits.
government auditors:
auditors whose work is governed by the GAO audit standards, whether they be audit employees of governments or public accounting firms engaged to perform government audits.
internal accounting control:
the plan of organization and procedures designed to prevent, detect and correct accounting errors that may occur and get recorded in ledger accounts and financial statements.
internal auditing:
study of business operations for the purpose of making recommendations about the economic and efficient use of resources, effective achievement of business objectives and compliance with company policies. (see also management auditing, operational auditing, performance auditing)
internal auditors:
persons employed within organizations for audit assignments.
management auditing:
study of business operations for the purpose of making recommendations about the economic and efficient use of resources, effective achievement of business objectives and compliance with company policies. (see also internal auditing, operational auditing, performance auditing)
preliminary survey:
an internal auditor's familiarization with the organization, program or activity being audited, gained by gathering information, but without detailed investigation or verification procedures.
