CIA PT1 Unit 1 Multiple Choice

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jmtew
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95018
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CIA PT1 Unit 1 Multiple Choice
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2011-07-24 13:23:05
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CIA PT1 Unit Multiple Choice
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CIA PT1 Unit 1 Multiple Choice
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  1. According to the Glossary appended to the Standards,Cwhich of the following are most directly designed to ensure that risks are contained?

    a. Control processes.
    b. Internal audit activities.
    c. Governance processes.
    d. Risk management processes.
    b. Internal audit activities.
  2. Freedom from conditions that threaten internal auditors’ ability to do unbiased work is

    a. Control.
    b. Independence.
    c. Compliance.
    d. Avoidance of conflicts of interest.
    b. Independence is “the freedom from conditions that threaten the ability of the internal audit activity to carry out internal audit responsibilities in an unbiased manner”
  3. To ensure that due professional care has been taken at all times during an engagement, the internal auditor should always

    a. Communicate any noncompliance or irregularity discovered during an engagement promptly to the audit committee.
    b. Ensure that all financial information related to the audit is included in the audit plan and examined for nonconformance or irregularities.
    c. Consider the possibility of nonconformance or irregularities at all times during an engagement.
    d. Ensure that all audit tests are fully documented.
    c. Consider the possibility of nonconformance or irregularities at all times during an engagement. Due professional care implies reasonable care and competence, not infallibility or extraordinary performance. Thus, due professional care requires the internal auditor to conduct examinations and verifications to a reasonable extent. Accordingly, internal auditors cannot give absolute assurance that noncompliance or irregularities do not exist. Nevertheless, the possibility of material irregularities or noncompliance needs to be considered whenever the internal auditor undertakes an internal auditing assignment (PA 1220-1). Thus, considering the possibility of nonconformance or material irregularities at all times during an engagement is the only way of demonstrating that due professional care has been taken in an internal audit assignment.
  4. Which of the following statements is true with respect to due professional care?

    a. An internal auditor has no responsibility to recommend improvements.
    b. An item should not be mentioned in an engagement communication unless the internal auditor is absolutely certain of the item.
    c. An internal auditor should perform detailed tests of all transactions before communicating results.
    d. An engagement communication should never be viewed as providing an infallible truth about a subject.
    d. An engagement communication should never be viewed as providing an infallible truth about a subject.

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