Questions and Answers

 1. 

Internal Auditing as defined by the Institute of Internal Auditors (IIA) is an

independent, objective assurance and consulting activity designed to add value
and improve an organization’s operations. It helps an organization accomplish
its objectives by bringing a systematic, disciplined approach to evaluate and
improve the effectiveness of Risk Management, Control and __________  

o A. 

Business Operations

o B. 

Governance Processes

o C. 

All of the above

o D. 

None of the above

 

 2. 

The objective of Operational Audit is to evaluate and improve the effectiveness,

efficiency and __________ of operations.

o A. 

Economy

o B. 

Economics

o C. 

Quality and Quantity

o D. 

All of the above

 
 3. 

Operational Audit focuses on __________

o A. 

Financial Reporting objectives such as GAAP.

o B. 

Corporate standards of business conduct, internal policies; specific laws and

regulations.

o C. 

Mission, Vision and Objectives of the Organization and its management.

o D. 

All of the above.

 

 4. 

The following are reasons necessitating Operations Audit, except:

o A. 

Management may need the auditor’s analysis and objective report to sell changes to
upper management.

o B. 

Management does not see the need for change.

o C. 

All of the above

o D. 

None of the above

 

 5. 

One of the 6 E’s of Operational Audit, it refers to performing tasks with

reasonable effort (doing things the right way); ratio of actual inputs to actual
outputs.
o A. 

Economy

o B. 

Efficiency

o C. 

Effectiveness

o D. 

Equity