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A new chief audit executive wants to develop a formal internal control framework for her organization. She uses globally accepted frameworks as a guide. Which of the following would she likely find critical in creating the new framework for her organization?
Which of the following offers the feast evidence that the internal audit activity has achieved organizational independence?
An engagement supervisor notes that an internal auditor usually documents and submits draft audit reports for review without giving the process owners the opportunity to state their position on the issues raised. How should the engagement supervisor respond?
Which of the following situations is most likely to threaten the independence of the internal audit activity?
Which of the following actions by an organization's board would potentially impair the internal audit activity's independence?
Which of the following actions does a competency assessment tool help the chief audit executive perform?
Which of the following statements is true regarding risk management frameworks?
Which of the following is the internal audit activity expected to do with respect to the organization's governance processes?
Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?
How can an Internal audit activity contribute to Its organization's risk assessment process?

Question 626 - IIA-CIA-Part1 discussion

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Which of the following statements best describes a functional difference between external auditors and internal auditors?

A.

Internal auditors evaluate past achievements to understand whether controls are operating effectively, and external auditors focus on the accuracy of financial reporting.

Answers
A.

Internal auditors evaluate past achievements to understand whether controls are operating effectively, and external auditors focus on the accuracy of financial reporting.

B.

Internal auditors provide assurance about the sufficiency of controls to manage risks. Including risks of failure to achieve future goals, and external auditors evaluate the accuracy and understandability of financial reporting.

Answers
B.

Internal auditors provide assurance about the sufficiency of controls to manage risks. Including risks of failure to achieve future goals, and external auditors evaluate the accuracy and understandability of financial reporting.

C.

internal auditors are always employed by the organization, rather than outsourced, and external auditors are never employed by the organization but contracted independently.

Answers
C.

internal auditors are always employed by the organization, rather than outsourced, and external auditors are never employed by the organization but contracted independently.

D.

Internal auditors are most directly concerned with the detection of fraud, while external auditors are most directly concerned with the prevention of fraud.

Answers
D.

Internal auditors are most directly concerned with the detection of fraud, while external auditors are most directly concerned with the prevention of fraud.

Suggested answer: B

Explanation:

Internal auditors focus on assessing the adequacy of controls to manage various risks within the organization, including operational and strategic risks. External auditors primarily focus on the accuracy and reliability of the organization's financial statements and compliance with relevant accounting standards.

Reference:

IIA Standard 2100: Nature of Work.

IIA Practice Guide: Coordination and Reliance: Developing an Assurance Map.

External Audit Standards (e.g., Generally Accepted Auditing Standards - GAAS).

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asked 03/11/2024
107 gleann na ri charles
34 questions
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