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Questions and Answers
What should be considered when determining the competence of the internal audit function?
What should be considered when determining the competence of the internal audit function?
- The adequacy of resources relative to entity size and operations (correct)
- Direct access to governance by the internal audit function
- The reporting structure of the internal audit function
- Constraints placed on the internal audit function by management
Why is it important for the internal audit function to have direct access to those charged with governance?
Why is it important for the internal audit function to have direct access to those charged with governance?
- For constraints placed by management
- To report directly to management
- To have oversight of employment decisions
- To communicate findings effectively (correct)
What could be a threat to the objectivity of internal auditors?
What could be a threat to the objectivity of internal auditors?
- Performing managerial duties alongside auditing tasks (correct)
- No constraints or restrictions from management
- Having direct access to governance
- Reporting to management only
Which factor may affect the external auditor's determination of the internal audit function's competence?
Which factor may affect the external auditor's determination of the internal audit function's competence?
In what way does direct assistance by internal auditors benefit the external auditor?
In what way does direct assistance by internal auditors benefit the external auditor?
Why must the internal audit function be free of conflicting responsibilities?
Why must the internal audit function be free of conflicting responsibilities?
What distinguishes the activities of the internal audit function from other monitoring control activities?
What distinguishes the activities of the internal audit function from other monitoring control activities?
What is the relationship between the organizational status and relevant policies and the likelihood of external auditors using the work of internal auditors?
What is the relationship between the organizational status and relevant policies and the likelihood of external auditors using the work of internal auditors?
In determining if the internal audit function applies a systematic approach, what documented procedures or guidance may affect the external auditor's assessment?
In determining if the internal audit function applies a systematic approach, what documented procedures or guidance may affect the external auditor's assessment?
Can strong organizational support for internal auditors' objectivity compensate for a lack of competence in the internal audit function?
Can strong organizational support for internal auditors' objectivity compensate for a lack of competence in the internal audit function?
Why can't a high level of internal audit competence compensate for organizational deficiencies in supporting auditor objectivity?
Why can't a high level of internal audit competence compensate for organizational deficiencies in supporting auditor objectivity?
In the context of auditing, how can objectivity and competence be perceived?
In the context of auditing, how can objectivity and competence be perceived?
What factors can affect the external auditor's assessment of the internal audit function's systematic approach?
What factors can affect the external auditor's assessment of the internal audit function's systematic approach?
What is a key requirement for internal auditors to be utilized by external auditors in more areas?
What is a key requirement for internal auditors to be utilized by external auditors in more areas?
Which aspect distinguishes the internal audit function from other control activities?
Which aspect distinguishes the internal audit function from other control activities?
How does the lack of competence in the internal audit function affect the potential use of their work by external auditors?
How does the lack of competence in the internal audit function affect the potential use of their work by external auditors?
Why should documented internal audit procedures be commensurate with the size and circumstances of an entity?
Why should documented internal audit procedures be commensurate with the size and circumstances of an entity?
Which factor takes precedence when considering whether external auditors will make use of the work of internal auditors?
Which factor takes precedence when considering whether external auditors will make use of the work of internal auditors?
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