Podcast
Questions and Answers
What is the primary goal of internal auditing?
What is the primary goal of internal auditing?
- To add value and improve an organization's operations (correct)
- To ensure compliance with SOX regulations
- To evaluate the performance of the audit committee
- To conduct financial audits of the organization
Who should make the decision about whether to establish and maintain an internal audit function or outsource the function?
Who should make the decision about whether to establish and maintain an internal audit function or outsource the function?
- Independent auditors
- The audit committee
- The board of directors and its representatives (correct)
- Senior management
What is a limitation imposed by SOX on independent auditors?
What is a limitation imposed by SOX on independent auditors?
- They cannot perform both audit services on financial statements and internal audit outsourcing to the same public client for the same fiscal year (correct)
- They cannot perform internal auditing outsourcing services for non-public clients
- They cannot perform audit services on financial statements
- They cannot provide consulting services to their clients
What is a factor that should be considered when deciding whether to outsource the internal audit function?
What is a factor that should be considered when deciding whether to outsource the internal audit function?
What type of services are prohibited by SEC rules for auditors?
What type of services are prohibited by SEC rules for auditors?
Why are external auditors prohibited from providing internal audit services related to internal accounting controls?
Why are external auditors prohibited from providing internal audit services related to internal accounting controls?
What is a responsibility of the external auditor under GAAS or applicable attestation standards?
What is a responsibility of the external auditor under GAAS or applicable attestation standards?
What is the primary benefit of a close working relationship between the audit committee and internal auditors?
What is the primary benefit of a close working relationship between the audit committee and internal auditors?
What is essential for the success of internal auditors and the achievement of their value-added activities?
What is essential for the success of internal auditors and the achievement of their value-added activities?
What is a prohibited service for an external auditor when providing attest services related to internal controls?
What is a prohibited service for an external auditor when providing attest services related to internal controls?
