Internal Auditing and Systems Controls Paper 6

1

An engagement performed at an organization’s payroll department has revealed various control weaknesses. These weaknesses along with recommendations for corrective actions were addressed in the final engagement communication. This communication should be most useful to the organization’s






2

Which of the following individuals normally would not receive an internal auditing report related to a review of the purchasing cycle?






3

The internal auditing department has just completed an audit report that outlines several deficiencies found in the company’s product distribution channels. Which one of the following persons should receive a copy of the audit report to ensure maximum benefits for the company?






4

The primary reason for having written formal internal audit reports is to






5

Which one of the following forms of audit is most likely to involve a review of an entity’s performance of specific activities in comparison to organizational-specific objectives?






6

If a corporation may be violating federal and state laws governing environmental concerns, which one of the following types of audit will best assist in ascertaining whether such situations may exist?






7

Which one of the following types of audits would be most likely to focus on objectives related to the economic and efficient use of resources?






8

When an auditor expresses an opinion as to the efficiency and effectiveness of an entity’s activities and makes recommendations for improvements, the auditor is conducting a(n)






9

In the practice of internal auditing, the auditors must consider the following responsibilities:
? Be alert to the possibility of intentional wrongdoing, errors and omissions, inefficiency, waste, ineffectiveness, and conflict of interest.
? Conduct examinations and verifications to a reasonable extent.
? Recommend whatever investigation is considered necessary in the circumstances and follow up to see that responsibilities have been met.
Which one of the following specific Standards for the Professional Practice of Internal Auditing most directly covers these responsibilities?






10

In the practice of internal auditing, auditors should identify conditions such as
? Underutilized facilities,
? Procedures which are not cost justified, and
? Overstaffing and understaffing.
Which one of the following Standards for the Professional Practice of Internal Auditing most directly covers these activities?






Result

Total Questions:
Correct Answers:
Wrong Answers:
Percentage: