Internal Auditor Policies and Qualifications

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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?

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?

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?

Adequacy of resources based on entity size Signup and view all the answers

In what way does direct assistance by internal auditors benefit the external auditor?

It aids in efficient communication of findings Signup and view all the answers

Why must the internal audit function be free of conflicting responsibilities?

To maintain objectivity in auditing tasks Signup and view all the answers

What distinguishes the activities of the internal audit function from other monitoring control activities?

Systematic and disciplined approach Signup and view all the answers

What is the relationship between the organizational status and relevant policies and the likelihood of external auditors using the work of internal auditors?

They are directly proportional Signup and view all the answers

In determining if the internal audit function applies a systematic approach, what documented procedures or guidance may affect the external auditor's assessment?

Documented risk assessments and work programs Signup and view all the answers

Can strong organizational support for internal auditors' objectivity compensate for a lack of competence in the internal audit function?

No, it cannot compensate at all Signup and view all the answers

Why can't a high level of internal audit competence compensate for organizational deficiencies in supporting auditor objectivity?

Procedures and policies do not support auditor objectivity Signup and view all the answers

In the context of auditing, how can objectivity and competence be perceived?

As a continuum Signup and view all the answers

What factors can affect the external auditor's assessment of the internal audit function's systematic approach?

Use of documented procedures like risk assessments Signup and view all the answers

What is a key requirement for internal auditors to be utilized by external auditors in more areas?

A combination of high competence and objectivity support Signup and view all the answers

Which aspect distinguishes the internal audit function from other control activities?

Systematic and disciplined approach Signup and view all the answers

How does the lack of competence in the internal audit function affect the potential use of their work by external auditors?

It decreases the likelihood of external auditors using their work Signup and view all the answers

Why should documented internal audit procedures be commensurate with the size and circumstances of an entity?

To support the objectivity of internal auditors Signup and view all the answers

Which factor takes precedence when considering whether external auditors will make use of the work of internal auditors?

Competence of internal auditors Signup and view all the answers

Internal Auditor Policies and Qualifications

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