auditing 1

The definition of internal audit includes all of the following except

The reasons for outsourcing an internal audit include

The primary difference between operational auditing and financial auditing is that in operational auditing, the auditor

Independence permits internal auditors to render impartial and unbiased judgments. The best way for internal audit departments to achieve independence is through

The proper organizational role of internal auditing is to

During the audit of the quality control area, an auditor identified that a specific product has a 3 percent failure rate when tested. The specification calls for a failure rate of less than 1.8 percent. Product failure might lead to customer injury and in turn lawsuits against the company. The auditor has communicated this to management. Which of the following is not an acceptable response from management with regard to this risk?

Having an audit charter is important for internal audit departments. Which of the following items is generally not a reason to have an audit charter?

Your organization has selected you to develop an internal audit activity. Your approach will most likely be to hire

The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that

Senior management has ordered a compliance audit of the organization's employee benefits package. Which of the following do both the chief audit executive and senior management consider a primary engagement objective?

The Standards for the Professional Practice of Internal Audit of the Institute of Internal Auditors (IIA) is classified in three major categories. Which of the following is not one of these categories?

Which of the following is a requirement of the Standards for the Professional Practice of Internal Audit if the Institute of Internal Auditors (IIA) that is not a requirement of an external auditor performing a financial statement audit?

When preparing an audit report, an internal auditor must convince management to take action concerning the report's findings. When reporting on an audit finding, an auditor must include some key elements about that finding in the report. These key elements are

Program audits include determining

The Standards for the Professional Practice of Internal Auditing of the Institute of Internal Auditors (IIA) does not include the broad category of

Which of the following internal audits is generally not a type of government audit?

The U.S. Government Accountability Office (GAO) standards do not specifically require a written report in financial statement audits for

The federal law that established uniform requirements for audits of federal assistance provided to state and local governments is called

The definition of administrative control does not include reference to

When dealing with standards, measurements, and comparisons, input measurements are most important for audits of

Which of the following is not required to become a certified internal auditor (CIA)?

When considering the competence of internal auditors, external auditors should obtain evidence about the

When independent CPAs in public practice take engagements to audit government units or financial assistance recipients, they must follow

Which of the following statements is true?

Which of the following is a difference between performing an audit and performing a fraud examination?

Fraud examiners have four main objectives in performing an investigation. Which of the following is not one of those objectives?

In performing a financial statement audit in accordance with government auditing standards, an auditor is required to report on the entity's compliance with laws and regulations. This report should

Which of the following statements is a standard applicable to financial statement audits in accordance with government auditing standards?

The U.S. Government Accountability Office is an agency of

The demand for compliance auditing in generally accepted government auditing standards (GAGAS) terms is generated by

After performing work in a compliance attestation engagement and finding that a governmental agency's managers failed to install and perform even the most elementary controls to ensure compliance with laws and regulations and, in fact, committed numerous violations, an auditor most likely would

A GAO audit report entitled Aviation Safety: Safer Skies Initiative Has Taken Initial Steps to Reduce Accident Rates by 2007 is most likely a report based on work the auditors performed during a

The Single Audit Act of 1984 requires an annual audit of all governments, agencies, and nonprofit organizations that

When auditors report on a financial audit engagement in accordance with generally accepted government auditing standards (GAGAS), the basic report(s) include a

Generally accepted government auditing standards (GAGAS) regarding performance reporting standards requires the reports to tell about which of the following?

In assessing the objectivity of internal auditors, an independent auditor should

The work of internal auditors may affect the independent auditor's

When performing a fraud examination, the fraud examiner takes great care to preserve and identify any documents that may indicate fraud, which is called

Which of the following would be considered in determining whether an internal audit department is independent?

Which of the following would be considered an independence issue for an internal auditor?

Which of the following situations provides the greatest threat to an internal auditor's objectivity?

An internal auditor's report should contain five elements for each finding. Which of the following are the correct elements?

A university received a significant grant from the state in which it resides. Which of the following would be of greatest interest to a governmental auditor auditing that grant at the university?

In an audit of a municipality the auditor is most important audit objective is

Which of the following is mostly concerned with the benefits derived from the expenditure of funds?

A typical objective for internal auditors in the company's sustainability program is for the auditor to

A governmental auditor assigned to audit the financial statements of the state highway department would not be considered independent if the auditor

Management has instated a new grievance process. When an employee has a grievance a manager, in another department is assigned as an independent mediator to evaluate the employee's complaint. That manager must submit a written report to the Vice President of Human Resources, who must act on the report and discuss the resolution with the employee, the employee's manager, and any other relevant personnel. Management acknowledges that this process will mean that an employee will be paid for several hours of work during the grievance process and several managers will spend time in the process. However, this process will likely reduce employee turnover. This process has been in place for 18 months. Management wants to know what the costs are for the grievance process and if the new process is achieving the stated objective of reducing employee turnover. What type of audit would internal perform?

The purpose of the internal audit's evaluation of the effectiveness of existing risk management processes is to determine that

Predication is

In a fraud investigation, the first objective is

Which of the following would not be an objective of a fraud investigation?

Auditors of governmental units would not be presumed to be independent if they are

The services provided by internal auditors do not include

Operational audits do not include determining

Program audits do not include determining

The IIA Performance Standards do not include the standard for

The GAO Government Auditing Standards requirements for written reports in financial statement audits do not include

In a single audit of federal financial assistance programs, which of the following does the auditor not need to determine and report for each organization?

Which of the following auditors is responsible for designing and planning an audit to detect material illegal acts and frauds?

Generally, fraud examiners are called when a fraud is already known or suspected. The term that means a reason to believe a fraud has occurred is

Fraud examiners must be concerned with the integrity of the evidence that they find. Preserving the evidence is called

The AICPA Assurance Services Executive Committee identified five megatrends that can affect public accounting firms'' business. Which of the following is NOT one of the megatrends they identified?

Assurance services are defined as independent professional services that

Many individuals are apprehensive about using the Internet to purchase items. This apprehension mainly arises from users' concerns about

The phrase "Trust services" refers to

Which of the following is NOT a principle of Trust Service engagements?

What is the appropriate name for an assurance service provided by a CPA regarding a client's commercial Internet site with reference to the principles of privacy, security, processing integrity, availability, and confidentiality?

Extensible Business Reporting Language (XBRL) provides a computer readable identifying tag for each individual item of data. The advantages of XBRL include all of the following except

Enhanced Business Reporting (EBR) focuses on improving business reporting by developing a voluntary framework for presentation and disclosure of value drivers and non-financial measures of performance. The advantages of EBR include all of the following except

Attestation engagements include

The accountant's standard report for a compilation service would not include a statement that

Shelly's Bank has loaned money to Pete's Auto Supply. The loan is collateralized by inventory. The loan also requires a CPA to observe the count of the inventory and trace sampled items to the vendor invoices in order to determine the value of inventory is not misstated. This service would be

The reporting standards for an attestation are different from that of an audit because they require

Attestation engagements may be more difficult than financial statement audits when

In an agreed-upon procedures engagement, an accountant must

A responsible party for information to subject to an attestation engagement would not include

Which of the following procedures would not be performed in a review of financial statements of a nonpublic company?

ABC Company prepares financial statements showing the last two years, years X and Y (Year X is the year prior to year Y). The auditor performed an audit of year X and a review of year Y. The auditor may

In an agreed-upon procedures engagement, an accountant

Which of the following procedures should an accountant perform during an engagement to review the financial statements of a nonpublic entity?

When an accountant is engaged to compile a nonpublic entity's financial statements that omit substantially all disclosures required by GAAP, the accountant should indicate in the compilation report that the financial statements

Which of the following procedures ordinarily should be applied when an independent accountant conducts a review of interim financial information of a publicly held entity?

An auditor's special report on financial statements prepared in conformity with the cash basis of accounting should include a separate explanatory paragraph before the opinion paragraph that

Which of the following best describes an engagement to report on an entity's internal control over financial reporting for a nonpublic company?

Delta Life Insurance Co. prepares its financial statements on an accounting basis insurance companies use pursuant to the rules of a state insurance commission. Wall, CPA, is Delta's auditor. If Wall discovers that the statements are not suitably titled, Wall should

When providing limited assurance that the reviewed financial statements of a nonpublic entity require no material modifications to be in accordance with generally accepted accounting principles, the accountant should

Which of the following procedures is ordinarily performed by an accountant in a compilation engagement of a nonpublic entity?

In reporting on a nonpublic entity's internal control over financial reporting, an accountant should include a paragraph that describes the

Compiled financial statements of a nonpublic entity should be accompanied by a report stating that

Hamell Corporation is making a presentation to a prospective investor. The presentation includes a projection showing that the company's sales will be between $25,000,000 and $27,000,000 within the next three years. Hamell believes the information will be better received if its CPA provides an attestation report on the projection. In order to provide such a report the CPA must do all of the following EXCEPT

Hamell Corporation is making a presentation to a perspective investor. The presentation includes a projection showing that the company's sales will be between $25,000,000 and $27,000,000 within the next three years. Hamell believes the information will be better received if its CPA provides an attestation report on the projection. The CPA should insure that proper disclosure is made to indicate that

Which of the following is NOT a condition that must be met before an accountant can conduct an engagement concerning a nonpublic entity's internal control over financial reporting?

Which of the following steps is NOT required in performing a compliance attestation engagement?

An accountant's report includes the phrase "We are not aware". This phrase indicates

The procedures used in a review engagement are

In a compilation engagement, the accountant

In a compilation engagement,

In order to perform a review of interim financial information, the auditor must

When interim financial information is presented as supplementary information accompanying audited financial statements, the auditor should make reference to the information

Other Comprehensive Basis of Accounting (OCBOA) includes all of the following EXCEPT

Which of the following account titles would not be appropriate for a company that prepared its financial statements using the tax basis of accounting?

When a company uses a service organization to prepare its payroll, the company's auditors

Auditors can gain sufficient understanding of the internal controls at a service organization by

Reports on an entity's internal control over financial reporting

During a review engagement, which of the following is NOT a required inquiry of management?

During a review the auditor is required to obtain written representations from management. Which of the following is NOT one of the required elements of the representation?

AR 90 requires adequate documentation for a review engagement. Which items are required to be documented?

At a minimum, in order to comply with PCAOB AS 5, an auditor of a public company that has material transactions processed by a service organization would have to request from the service organization

An auditor that is requested to provide a report on application of requirements of an appropriate financial reporting framework may not

A report on sustainability, as defined by the AICPA, might include all of the following except