Auditing and Assurance Service 15e Test Bank

Topics: Auditing, Financial audit, Internal control Pages: 24 (4436 words) Published: August 31, 2014
Auditing and Assurance Services by Alvin a Arens 15th Edition Test Bank  Contact me here sellertbsm2014@hotmail.com to download the test bank INSTANTLY!!! PRICE FOR THE TEST BANK, SOLUTION MANUAL AND BOOK PDF:

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This is a sample chapter

Auditing and Assurance Services, 15e (Arens)
Chapter 26 Internal and Governmental Financial Auditing and Operational Auditing

Learning Objective 26-1

1) Internal Auditors are expected to add value to the organization through improved operational effectiveness. In addition, their responsibilities include all the following except: A) reviewing the reliability and integrity of information.

B) ensuring compliance with the company's accounting policies. C) verifying accounting information for external users.
D) ensuring compliance with applicable governmental regulations. Answer: C
Terms: Internal auditors responsibilities
Diff: Easy
Objective: LO 26-1
AACSB: Reflective thinking skills

2) Statements on Internal Auditing Standards are issued by the: A) AICPA.
B) SEC.
C) Internal Auditing Standards Boards.
D) Auditing Standards Boards.
Answer: C
Terms: Statements on Internal Auditing Standards
Diff: Easy
Objective: LO 26-1
AACSB: Reflective thinking skills

3) Internal auditors are responsible to:
A) the board of directors.
B) management.
C) both A and B.
D) neither A nor B.
Answer: C
Terms: Internal auditors are responsible to
Diff: Easy
Objective: LO 26-1
AACSB: Reflective thinking skills

4) Which of the following is not a similarity between external and internal auditors? A) Both must be independent of the company.
B) Both must be competent.
C) Both follow a similar methodology in performing their audits. D) Both consider risk and materiality deciding the extent of their tests and evaluating results. Answer: A
Terms: Similarity between internal and external auditors
Diff: Easy
Objective: LO 26-1
AACSB: Reflective thinking skills
5) External auditors would consider internal auditors effective if they are: A) independent of the operating units being evaluated.
B) competent and well trained.
C) have performed relevant audit tests of the internal controls and financial statements. D) all of the above.
Answer: D
Terms: External auditors; Internal auditors effective
Diff: Easy
Objective: LO 26-1
AACSB: Reflective thinking skills

6) Which of the following is most correct regarding external auditors use of internal auditors directly on the audit engagement? A) Discourage
B) Prohibit
C) Encourage
D) Permit
Answer: D
Terms: External auditors use of internal auditors
Diff: Easy
Objective: LO 26-1
AACSB: Reflective thinking skills

7) The international standards for the professional practice of internal auditing include which two categories of standards? A) Attribute and performance
B) Competency and professional skepticism
C) Performance and integrity
D) Ethics and rules of conduct
Answer: A
Terms: International standards; Internal auditing
Diff: Easy
Objective: LO 26-1
AACSB: Reflective thinking skills

8) The professional organization which is responsible for providing guidance for internal auditors is the: A) APA.
B) IIA.
C) ABA.
D) AIA.
Answer: B
Terms: Professional organization responsible for guidance for internal auditors Diff: Easy
Objective: LO 26-1
AACSB: Reflective thinking skills
9) External financial statement auditors must obtain evidence regarding what attributes of an internal audit department if the external auditors intend to rely on the internal auditor's work? A)
If they have performed relevant audit tests of the internal controls and financial statements Competence
Yes
Yes

B)
If they have performed relevant audit tests of the internal controls and financial statements Competence
No
No

C)
If they have performed relevant audit tests of the internal controls and...
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