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CA Final Internal Audit — practice questions

Explore 99 free Internal Audit questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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Internal Audit questions and exercises with answers

Showing questions 1–30 of 99.

Who is often called the father of modern internal auditing?Read the answer and worked solution →Which designation does the IIA award through a written examination?Read the answer and worked solution →In internal auditing, what does the abbreviation CAE stand for?Read the answer and worked solution →To whom does the CAE generally report functionally?Read the answer and worked solution →What is the internal auditor's role in company activities?Read the answer and worked solution →Internal auditing activity is primarily directed at evaluating what?Read the answer and worked solution →Internal control is designed to give what level of assurance?Read the answer and worked solution →Which COSO component covers the policies and procedures ensuring management directives are carried out?Read the answer and worked solution →Which is a core objective of internal control?Read the answer and worked solution →Who bears responsibility for establishing the five components of internal control?Read the answer and worked solution →What role do internal auditors usually play on a SOX 404 risk assessment team?Read the answer and worked solution →Besides the board, management and the external auditor, what is the fourth pillar of corporate governance?Read the answer and worked solution →Who typically reviews and approves the annual audit plan proposed by the CAE?Read the answer and worked solution →On what basis do internal auditors prioritize areas in the annual audit plan?Read the answer and worked solution →What typically comes first in an internal audit assignment?Read the answer and worked solution →What kind of sampling approach do internal auditors develop to test controls?Read the answer and worked solution →Which specialists review information technology controls within internal audit?Read the answer and worked solution →In a finding, a company policy requiring two signatures was ignored. Which of the 5 C's is the policy?Read the answer and worked solution →A report warns that unapproved payments could cause a financial loss. Which C is this?Read the answer and worked solution →Management agrees to add a second approver by month end. Which of the 5 C's is this?Read the answer and worked solution →Which of the 5 C's describes the particular problem identified?Read the answer and worked solution →A report uses simple, straightforward language. Which quality does this show?Read the answer and worked solution →Comments in a report are unbiased and fair. Which quality does this show?Read the answer and worked solution →Under IIA standards, what kind of report lets executives weigh issues in context?Read the answer and worked solution →Audit findings may relate to which assertion about transactions?Read the answer and worked solution →Which approach can be used to measure the internal audit function?Read the answer and worked solution →What does independent peer review of internal audit groups support?Read the answer and worked solution →Which Sawyer phrase encouraged positive reinforcement?Read the answer and worked solution →Sawyer pushed auditors to look beyond financial statements into which type of auditing?Read the answer and worked solution →Which function is the third line of defence reporting directly to the board?Read the answer and worked solution →

Worked practice questions

Who is often called the father of modern internal auditing?

  1. Henri Fayol
  2. Robert Montgomery
  3. Lawrence Sawyer
  4. Luca Pacioli
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Correct answer: C. Lawrence Sawyer

Lawrence Sawyer conceived most of the theory of internal auditing and shaped the IIA's modern practice framework.

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Which designation does the IIA award through a written examination?

  1. Certified Public Accountant
  2. Chartered Financial Analyst
  3. Certified Internal Auditor
  4. Certified Management Accountant
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Correct answer: C. Certified Internal Auditor

The IIA awards the Certified Internal Auditor designation internationally after a rigorous written exam.

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In internal auditing, what does the abbreviation CAE stand for?

  1. Chief accounts executive
  2. Certified audit examiner
  3. Corporate assurance entity
  4. Chief audit executive
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Correct answer: D. Chief audit executive

CAE means chief audit executive, the person who leads the internal audit department.

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More Auditing topics

Auditor's ReportOverview of Audit of Public Sector UndertakingsStandards on Auditing and Professional EthicsInternational Ethics Standards Board for AccountantsRisk Assessment and Internal ControlSpecial Features of Audit of Banks and Non-Banking Financial CompaniesAuditor's Report on Financial StatementsAudit Planning Strategy and Execution