IT Audit and Internal Controls
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Questions and Answers

What is the primary responsibility of the audit committee?

  • Overseeing IT audit activities
  • Setting the overall direction for internal audit activities (correct)
  • Managing the internal audit function
  • Coordinating financial reporting

    • Why must audit committee members be independent directors?

  • To ensure they have a strong understanding of IT audit
  • Because they need to work closely with management
  • To reduce the risk of internal controls failures
  • Due to SOx requirements (correct)

    • Who can attend audit committee meetings?

  • Only independent directors
  • Members of management and others invited by the committee (correct)
  • The entire board of directors
  • Only audit committee members

    • What is the purpose of the audit committee's internal audit function?

    <p>To provide assessments of internal controls and financial activities</p> Signup and view all the answers

    What is the typical size of an audit committee?

    <p>5 to 6 members</p> Signup and view all the answers

    What is the outcome of the audit committee's decisions?

    <p>They are enacted through board resolutions</p> Signup and view all the answers

    What is the typical reporting structure for an internal audit function in a larger enterprise?

    <p>The internal audit function reports to the audit committee of the board of directors.</p> Signup and view all the answers

    What tends to be the focus of many audit committees?

    <p>Financial reporting and SOx compliance issues.</p> Signup and view all the answers

    What is the primary role of the audit committee in relation to the internal audit function?

    <p>To oversee the internal audit function's budget and plans.</p> Signup and view all the answers

    Why should IT auditors be more involved with the audit committee?

    <p>Because IT issues and internal controls play a significant role in modern enterprise operations.</p> Signup and view all the answers

    What should internal audit provide to the audit committee?

    <p>The results of their work and highlights of issues requiring further action.</p> Signup and view all the answers

    Who do IT auditors typically report to in a larger enterprise?

    <p>The chief audit executive (CAE).</p> Signup and view all the answers

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