10 Questions
Match the following terms with their definitions:
Audit Universe = A range of potential audit activities to be carried out by internal audit function Business Process = The means through which an accounting system processes transactions of related activities Auditable Units = Entities, processes, systems and activities that can be audited Internal Control Measures = Mechanisms in place across the whole process to ensure effectiveness
Match the business processes with their related activities:
Sale of goods = Activity related to selling products to customers Acquisition of merchandise = Activity related to obtaining goods for business Payment to vendor = Activity related to settling dues with suppliers
Match the following units with their relations to an audit:
Audit Universe = Contains several auditable units Business Process = Way of defining the internal audit universe Auditable Units = Result in an audit universe of fewer units
Match the following audit related terms with their definitions:
Audit Engagement = A more complex audit coordination between a number of parts of the organization Internal Control Measures = Reassurance to management on the effectiveness across the whole process
Match the following terms with their definitions related to auditing:
Internal Audit Function = Carries out potential audit activities in an audit universe Business Process = Defining factor of the internal audit universe of auditable units
True or false: An audit universe consists of auditable entities, processes, systems, and activities.
True
True or false: Defining the internal audit universe based on business processes can result in a more complex audit engagement.
True
True or false: The main benefit of defining the internal audit universe based on business processes is to provide reassurance to management on the effectiveness of internal control measures.
True
True or false: Business processes are the means through which an accounting system processes transactions of related activities.
True
True or false: Business processes can include activities such as the sale of goods to customers and acquisition of merchandise.
True
Test your knowledge on audit universes and business processes with this quiz. Learn about the components of an audit universe and how it is defined using the business process approach. Challenge yourself to understand the concept of auditable units and their implications for internal audits.
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