CHAPTER 1

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What is the primary difference between the roles of external auditors and internal auditors?

External auditors report to shareholders while internal auditors report to management.

External auditors provide consulting services while internal auditors provide assurance services.

External auditors focus on financial reporting while internal auditors focus on operations and compliance.

External auditors are independent while internal auditors work for the organization being audited. (correct)

What organization sets professional standards for internal auditors?

Information Systems Audit and Control Association (ISACA)

American Institute of CPAs (AICPA)

Institute of Internal Auditors (IIA) (correct)

Financial Accounting Standards Board (FASB)

What is the primary objective of audit cooperation between internal and external auditors?

To reduce audit fees by avoiding duplication of work. (correct)

To provide the external auditor with access to the organization's internal audit work.

To allow the external auditor to supervise the work of the internal auditor.

To ensure the independence of the external auditor.

What is the primary role of the Information Systems Audit and Control Association (ISACA)?

To provide professional certification for information systems auditors. Signup and view all the answers

Which of the following is a key responsibility of internal auditors?

Ensuring compliance with laws and regulations. Signup and view all the answers

What is the primary purpose of an IT audit?

To evaluate the effectiveness of the organization's information systems and controls. Signup and view all the answers

What is the primary difference between attest services and advisory services provided by auditors?

Attest services involve expressing an opinion on the reliability of financial information, while advisory services provide consulting and guidance to management. Signup and view all the answers

Which of the following best describes the relationship between external and internal auditors?

External and internal auditors must work together to ensure the overall effectiveness of the audit function. Signup and view all the answers

Which professional organization is responsible for establishing standards and guidance for internal auditors?

The Institute of Internal Auditors (IIA) Signup and view all the answers

What is the primary role of the Information Systems Audit and Control Association (ISACA)?

To provide guidance and certification for information systems auditors. Signup and view all the answers

How do external and internal auditors typically cooperate in the audit process?

External and internal auditors work together to develop the audit plan and coordinate their efforts throughout the audit process. Signup and view all the answers

What is the primary focus of the Information Systems Audit and Control Association (ISACA) in relation to auditing?

Providing guidance and certification for information systems auditors. Signup and view all the answers

Which of the following is the primary role of external auditors?

To express an independent opinion on the fair presentation of financial statements Signup and view all the answers

Which professional organization establishes standards and guidance for internal auditors?

Institute of Internal Auditors (IIA) Signup and view all the answers

Which of the following is NOT a primary responsibility of internal auditors?

Expressing an opinion on the fairness of financial statements Signup and view all the answers

What is the primary purpose of the COSO (Committee of Sponsoring Organizations) control framework?

To define internal controls in both manual and IT environments Signup and view all the answers

Which professional organization focuses specifically on auditing and controlling information systems?

Information Systems Audit and Control Association (ISACA) Signup and view all the answers

What is the primary benefit of cooperation between internal and external auditors?

Improving the quality and effectiveness of audit procedures Signup and view all the answers

CHAPTER 1

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Questions and Answers

What is the primary difference between the roles of external auditors and internal auditors?

What organization sets professional standards for internal auditors?

What is the primary objective of audit cooperation between internal and external auditors?

What is the primary role of the Information Systems Audit and Control Association (ISACA)?

Which of the following is a key responsibility of internal auditors?

What is the primary purpose of an IT audit?

What is the primary difference between attest services and advisory services provided by auditors?

Which of the following best describes the relationship between external and internal auditors?

Which professional organization is responsible for establishing standards and guidance for internal auditors?

What is the primary role of the Information Systems Audit and Control Association (ISACA)?

How do external and internal auditors typically cooperate in the audit process?

What is the primary focus of the Information Systems Audit and Control Association (ISACA) in relation to auditing?

Which of the following is the primary role of external auditors?

Which professional organization establishes standards and guidance for internal auditors?

Which of the following is NOT a primary responsibility of internal auditors?

What is the primary purpose of the COSO (Committee of Sponsoring Organizations) control framework?

Which professional organization focuses specifically on auditing and controlling information systems?

What is the primary benefit of cooperation between internal and external auditors?

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