Question

1. _______ is using computerized techniques to perpetually audit the processing of business transactions.
   1. Sampling
   2. Benchmarking
   3. Generalized auditing
   4. Continuous auditing
2. The internal audit activity should evaluate risk exposures relating to the organization’s governance, operations, and information systems regarding the

1. Reliability and integrity of financial and operational information
2. Effectiveness and efficiency of operations
3. Compliance with laws, regulations, and contracts
4. All of the above

3. Internal audit can do little to help with the following risk

1. A computer systems or network failure at one or several locations
2. The failure to complete several key information systems planned upgrades
3. The failure of an audit based on International Organization for Standardization (ISO) procedures or some other standards audit
4. A loss in stock market capitalization value due to reported operating losses

4. Internal auditing involves many varied activities such as

1. Efficiency and reliability of operations
2. Deterring and investigating fraud
3. Safeguarding assets
4. Compliance with laws and regulations
5. All of the above

5. ________ are computer tools that assist auditors in their tasks.

1. SCM systems
2. SAS systems
3. XBRL audit templates
4. Computer-assisted audit tools and techniques (CAATTs)

6. Under the attribute standard for due professional care in IIA’s International Standards for the Professional Practice of Internal Auditing, internal auditors must

1. Take an annual exam
2. Consider the use of technology-based audit and other data analysis techniques
3. Provide an annual report to the SEC
4. Perform continuous risk assessment and report results to outside investors

Answer 1

1.Continuous audit is the computerized technique of auditing the business transactions by a company perpetually. Hence Option D is correct.

2. As per the IIA internal audit shall evaluate the risk related to the effectiveness and efficiency of operations, reliability and integrity of the financial data, safeguarding of the Assets and compliance of the law. hence alla the three options are correct. So answer is D

3. Internal audit considers reporting of true and fair, complete and correct information. Hence, if an organisation is making losses then such a loss is needs to be disclosed. Accordingly if if any market capitalisation losses occur due to this disclosure, then neither audit auditor will not be held responsible. So Option D is correct.

4. As explained in 2, here the Option is Ě.

5. Computer assisted audit tools and techniques are the tools that auditor can use to execute their task while working on computer. Therefore option D is correct

6. While exercising the due professional care, the institute has specified that the internal auditors must consider the use of Technology based audit and other data analysis techniques. Hence Option B is Correct.