Opaud 2

Created by

Niña Kyla

Cards (29)

The IA Code of Ethics is based on all but which of the following ethical principles?
A.Integrity
B. Independence
C. Competency
D. Confidentiality
B. Independence
2. Internal auditors are responsible to:
A.the board of directors.
B. management.
C. both A and B.
D. neither A nor B.
C. both A and B.
3. Which of the following is not one of the broad categories of operational audits?
Functional audits.
B. Organizational audits.
C. Single Audit Act audits.
D. Special assignment audits.
C. Single Audit Act audits.
4. Which of the following is not a similarity between external and internal auditors?
A.Both must be independent of the company.
B. Both must be competent.
C. Both use similar methodologies in performing their work.
D. Both consider risk and materiality in their work.
A.Both must be independent of the company.
5. External auditors consider internal auditors effective if they are:
A.independent of the operating units being evaluated.
B. competent and well trained.
C. have performed relevant audit tests of the internal controls and financial statements.
D. All of the above 
D. All of the above
6. Auditing standards external auditors to use the intemal auditors for direct assistance on the audit.
discourage
B. prohibit
C. encourage
D. permit
D. permit
7. Which of the following groups could not be involved in an operational audit?
A.CPA firms.
B. Internal auditors.
C. Government auditors.
D. All of the above could be involved.
D. All of the above could be involved.
8. The professional organization which is responsible for providing guidance for internal auditors is the:
A.ACPACI.
B. IIA.
C. PICPA.
D. AIA.
B. IIA.
9. Which of the following is not one of the three phases in an operational audit?
A.Planning.
B. Training and supervising employees.
C. Evidence accumulation and evaluation.
D. Reporting and follow-up.
B. Training and supervising employees.
10. An audit designed to evaluate the efficiency and effectiveness of an organization, or some part of an
organization would not be called a(n):
A.performance audit.
B. management audit.
C. operational audit.
D. compliance audit.
D. compliance audit.
11. Which of the following is not one of the major differences between financial and operational auditing?
The financial audit is oriented to the past, but an operational audit concerns performance for the future.
B. The financial audit report is distributed to many readers
C. Financial audits deal with the information on the financial statements
D. Financial audits are limited to matters that directly affect the financial statements
C. Financial audits deal with the information on the financial statements, but operational audits are concerned with the information in the ledgers
13. Which of the following statements regarding types of operational audits is false?
A.A functional audit has the advantage of permitting specialization by auditors.
B. An advantage of functional auditing is its ability to evaluate interrelated functions.
C. The emphasis in an organizational audit is on how efficiently and effectively functions interact.
D. Special operational auditing assignments arise at the request of management 
B. An advantage of functional auditing is its ability to evaluate interrelated functions.
14. The two most important qualities for an operational auditor are:
A.personality and appearance.
B. independence and competence.
C. competence and technical training.
D. academic background and sufficient experience.
B. independence and competence.
15. Which of the following is not a difference between operational auditing and financial auditing?
A.Both must be CPAs.
B. Operational audit reports are usually of a restricted distribution while financial audit reports are widely distributed.
C. Operational audits often cover non-financial issues while financial audits do not.
D. None of the above is a difference.
A.Both must be CPAs.
16. A typical objective of an operational audit is to determine whether an entity's:
a.internal control is adequately operating as designed.
B. financial statements present fairly the results of operations.
C. specific operating units are functioning efficiently and effectively.
D. operational information is in accordance with generally accepted government auditing standards.
C. specific operating units are functioning efficiently and effectively.
D. Yes
Yes
18. Which is not a purpose of an economy and efficiency audit?
a.Whether the entity is acquiring, protecting, and using resources economically and efficiently.
B. The causes of inefficiencies and uneconomical practices.
C. Whether the entity has complied with laws and regulations concerning matters of economy and efficiency.
D. Each of the above is a purpose audit emphasizes how efficiently and effectively 
D. Each of the above is a purpose audit emphasizes how efficiently and effectively
19. A(n) ____ functions interact.
a.operational
B. compliance
C. financial
D. organizational
D. organizational
20. Which of the following is not a purpose of a program audit as performed by government auditors?
A.Determination of the extent to which the desired results established by the legislature are being achieved.
B. Determination of the causes of inefficiencies in sponsored programs,
C. Determination of the effectiveness of organizations, programs and activities.
D. Determination as to whether the entity has complied with laws and regulations applicable to the
program.
B. Determination of the causes of inefficiencies in sponsored programs,
21. What distinguishes internal control evaluation and testing for financial and operational auditing?
Purpose of the work.
B. Scope of the work.
C. Both A and B.
D. Neither A nor B.
C. Both A and B.
B. No No
D. No Yes
24. The following are the similarities between internal and external auditors except
Both must be competent as auditors and remain objective in performing their work and reporting their results.
B. Both follow a similar methodology in performing their audits, including planning and performing tests of controls and substantive tests.
C. Both functions serve the needs of the management.
D. Both consider risk and materiality in deciding the extent of their tests and evaluating results.
C. Both functions serve the needs of the management.
25. Below are the criteria which the external auditors typically consider internal auditors effective if they
meet the following except:
A.Independent of the operating units being evaluated.
B. Competent and well-trained.
C. Have performed relevant audit tests of the internal controls and financial statements.
D. All of the above are correct. 
D. All of the above are correct.
26. Operational auditing is the review of an organization for efficiency and effectiveness. Which of the following statements are true?
A..Effectiveness refers to the degree to which the organization's objectives and goals are accomplished,
B. Efficiency refers to the degree to which costs are reduced without reducing effectiveness.
C. Both a and b are correct.
D. Both a and b are incorrect. 
C. Both a and b are correct.
C. Statements Il and III
28. Which of the following statements is/are correct?
Statement I. Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits.
Statement II. Current professional auditing standards require external auditors to use internal auditors for direct assistance on external audits.
A.Statement I only.
B. Statements I and II.
C. None of the statements.
D. Statement II only.
C. None of the statements.
B. None of the statements.
C. Statement II only.
A.Statements I and Il.
B. Statement I only.
C. Statement II only.
D. None of the statements