Question 1

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an IT auditor?
A) Cybersecurity
B) Financial reporting
C) Claims processing
D) Human resources

Accepted Answer

IT auditors specialize in the auditing of information systems and technology processes, including cybersecurity, to ensure the integrity, confidentiality, and availability of information.

Question 2

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an IT auditor?
A) Financial reporting
B) Backups and storage
C) Claims processing
D) Human resources

Accepted Answer

IT auditors specialize in the audit of information systems and related processes. This includes evaluating the security and integrity of data in systems, which encompasses backups and storage to ensure data is accurately copied, stored securely, and recoverable in case of loss or damage.

Question 3

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an IT auditor?
A) Financial reporting
B) Claims processing
C) Network infrastructure
D) Human resources

Accepted Answer

IT auditors specialize in evaluating the design, implementation, and operation of an organization's IT systems and processes, including network infrastructure, to ensure they are secure, efficient, and aligned with the organization's objectives.

Question 4

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an IT auditor?
A) Financial reporting
B) Claims processing
C) Human resources
D) Security administration

Accepted Answer

IT auditors specialize in the audit of information systems and related processes, including security administration, to ensure the confidentiality, integrity, and availability of data.

Question 5

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by a financial auditor?
A) Financial reporting
B) Claims processing
C) Network infrastructure
D) Human resources

Accepted Answer

Financial auditors focus on the accuracy and legality of financial records and reports, including tasks such as reviewing financial statements and ensuring compliance with accounting standards.

Question 6

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by a financial auditor?
A) Claims processing
B) Corporate tax
C) Human resources
D) Security administration

Accepted Answer

Financial auditors focus on the accuracy and legality of financial records and transactions, which includes corporate tax matters.

Question 7

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by a financial auditor?
A) Claims processing
B) Network infrastructure
C) Accounts payable
D) Human resources

Accepted Answer

Financial auditors focus on the accuracy and legality of financial records and transactions, such as those related to accounts payable.

Question 8

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by a financial auditor?
A) Claims processing
B) Human resources
C) Security administration
D) Payroll

Accepted Answer

Financial auditors focus on the accuracy and legality of financial records and transactions, which includes payroll as it directly relates to the financial operations of a company.

Question 9

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an operational or business auditor?
A) Claims processing
B) Network infrastructure
C) Accounts payable
D) Change management

Accepted Answer

Operational or business auditors focus on evaluating the efficiency and effectiveness of an organization's operations, including its processes and procedures. Claims processing falls under this category as it involves assessing the operational aspects of handling and processing claims within an organization.

Question 10

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an operational or business auditor?
A) Security administration
B) Corporate investments
C) Payroll
D) Disaster recovery

Accepted Answer

Operational or business auditors focus on the efficiency and effectiveness of a company's operations, including its corporate investments. They assess whether the business is utilizing its resources optimally and making sound investment decisions.

Question 11

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an operational or business auditor?
A) Network infrastructure
B) Accounts payable
C) Sales and distribution
D) Change management

Accepted Answer

Operational or business auditors focus on evaluating the efficiency and effectiveness of an organization's operations, including its processes, activities, and functions. Sales and distribution fall under this category as they are core business operations that directly impact the organization's performance and operational efficiency.

Question 12

Historically, auditors were divided into groups based on their expertise: operational or business auditors, financial auditors, and information technology (IT) auditors. Which of the following would be performed by an operational or business auditor?
A) Security administration
B) Payroll
C) Disaster recovery
D) Human resources

Accepted Answer

Operational or business auditors focus on evaluating the efficiency and effectiveness of an organization's operations, including non-financial areas such as human resources. They assess whether the organization's processes and systems are operating efficiently and effectively to meet the organization's goals.

Question 13

The Institute of Internal Auditors (IIA) updated their three lines of defense model in 2020 to reflect the need for aligned assurance from various areas of a company. Which of the following is the best definition of aligned assurance?
A) Aligned assurance focuses on ensuring that the second and third lines of defense are working cohesively to provide appropriate coverage over a company's risks.
B) Aligned assurance is the systematic and independent review of data, information, records, and operations of a business to provide assurance of the effectiveness of internal controls and efficiency of processes.
C) Aligned assurance evaluates whether the financial statements of the audited company are free from material misstatements and are presented in accordance with generally accepted accounting standards.
D) Aligned assurance employs rigorous independence checks to ensure that their opinions will be unbiased and that they do not have inappropriate ties to the client.

Accepted Answer

Aligned assurance emphasizes the collaboration and coordination between the different lines of defense within an organization to ensure comprehensive risk coverage and control effectiveness, rather than focusing solely on independent reviews, financial statement accuracy, or independence checks.

Question 14

The Institute of Internal Auditors (IIA) updated their three lines of defense model in 2020 to reflect the need for aligned assurance from various areas of a company. Which of the following is the best definition of internal auditing?
A) Auditing focuses on ensuring that the second and third lines of defense are working cohesively to provide appropriate coverage over a company's risks.
B) Auditing is the systematic and independent review of data, information, records, and operations of a business to provide assurance of the effectiveness of internal controls and efficiency of processes.
C) Auditing evaluates whether the financial statements of the audited company are free from material misstatements and are presented in accordance with accounting standards.
D) Auditing employs rigorous independence checks to ensure that their opinions will be unbiased and that they do not have inappropriate ties to the client.

Accepted Answer

Internal auditing, as defined by the Institute of Internal Auditors (IIA), is a systematic and independent review to provide assurance on the effectiveness of internal controls and efficiency of operations, which aligns with choice B.

Question 15

The Institute of Internal Auditors (IIA) updated their three lines of defense model in 2020 to reflect the need for aligned assurance from various areas of a company. Which of the following is the best definition of external auditors?
A) External auditors focus on ensuring that the second and third lines of defense are working cohesively to provide appropriate coverage over a company's risks.
B) External auditors provide the systematic and independent review of data, information, records, and operations of a business to provide assurance of the effectiveness of internal controls and efficiency of processes.
C) External auditors evaluate whether the financial statements of the audited company are free from material misstatements and are presented in accordance with accounting standards.
D) External auditors employ rigorous independence checks to ensure that their opinions will be unbiased and that they do not have inappropriate ties to the client.

Accepted Answer

External auditors primarily focus on evaluating the accuracy and fairness of a company's financial statements to ensure they are free from material misstatements and comply with accounting standards. This role is distinct from assessing the effectiveness of internal controls or the efficiency of processes, which may be part of the internal audit function or other assurance providers within the organization.

Question 16

The Institute of Internal Auditors (IIA) updated their three lines of defense model in 2020 to reflect the need for aligned assurance from various areas of a company. Which of the following is the best definition of internal auditors?
A) Internal auditors focus on ensuring that the second and third lines of defense are working cohesively to provide appropriate coverage over a company's risks.
B) Internal auditors provide the systematic and independent review of data, information, records, and operations of a business to provide assurance of the effectiveness of internal controls and efficiency of processes.
C) Internal auditors evaluate whether the financial statements of the audited company are free from material misstatements and are presented in accordance with generally accepted accounting standards.
D) Internal auditors employ rigorous independence checks to ensure that their opinions will be unbiased and that they do not have inappropriate ties to the client.

Accepted Answer