Question 1

Match the internal auditors code of conduct principle with the appropriate definition.
A)Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.
B)Shall be prudent in the use and protection of information acquired in the course of their duties.
C)Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
D)Shall perform their work with honesty, diligence, and responsibility.
-Confidentiality

Accepted Answer

Confidentiality refers to ensuring that information designated as private is protected according to the entity's objectives, which aligns with option D.

Question 2

Books Ga'Lore! Invoice DFD 
-Using the Books Ga'Lore! invoice DFD, create an event-agent-datastore-control table.

Accepted Answer

The answer of Books Ga'Lore! Invoice DFD 
-Using the Books...

Question 3

Which Rule of Conduct for internal auditors states that they will not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization?
A)Objectivity
B)Integrity
C)Competency
D)Confidentiality

Accepted Answer

The principle of integrity requires internal auditors to be honest, candid, and truthful in all their dealings and to not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization. The other choices relate to different principles of conduct: Objectivity requires internal auditors to be impartial and independent, Competency requires internal auditors to possess the knowledge, skills, and abilities needed to effectively perform their roles, and Confidentiality requires internal auditors to protect the organization's sensitive information.

Question 4

Which Rule of Conduct for internal auditors states that they are not to use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization?
A)Objectivity
B)Integrity
C)Competency
D)Confidentiality

Accepted Answer

The Rule of Conduct for internal auditors that states they should not use information for personal gain or in a way that goes against the law or damages the organization's legitimate objectives is Confidentiality. Objectivity refers to being unbiased and impartial in performing audits, Integrity refers to adhering to moral and ethical principles, and Competency refers to having the skills and knowledge needed to perform the audit.

Question 5

Which principle in the Code of Ethics for internal auditors states that the are to make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments?
A)Confidentiality
B)Competency
C)Objectivity
D)Integrity

Accepted Answer

The principle of objectivity states that internal auditors must make a balanced assessment of all relevant circumstances and be unbiased in forming judgments. They must not be unduly influenced by their own interests or by others. Confidentiality pertains to the safeguarding of information, competency pertains to the knowledge and skills required for the job, and integrity pertains to honesty and ethical behavior.

Question 6

Match the internal auditors code of conduct principle with the appropriate definition.
A)Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.
B)Shall be prudent in the use and protection of information acquired in the course of their duties.
C)Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
D)Shall perform their work with honesty, diligence, and responsibility.
-Competency

Accepted Answer

Competency is about applying the necessary knowledge, skills, and experience to perform audit services effectively, which matches option D.

Question 7

You are an internal auditor for a company with a policy stating all software on company computers must be approved and installed by the IT department. During the course of an IT audit you discover has installed MP3s on their company computer. What do you do?

Accepted Answer

The answer of You are an internal auditor for a...

Question 8

Document the preventive and detective controls on the Books Ga'Lore! invoice DFD.

Accepted Answer

The answer of Document the preventive and detective controls on...

Question 9

Match the internal auditors code of ethics principle to the appropriate definition.
A)Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
B)Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.
C)The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
D)Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined.
-Confidentiality

Accepted Answer

Confidentiality refers to ensuring that information designated as private is protected according to the entity's objectives, which aligns with option D.

Question 10

You are a manager for a large public accounting firm and have been assigned to conduct an internal audit for a publicly traded company. You your parents have 75% of their retirement savings in the client company stock. Prepare an email requesting another assignment. Explain your reasons.

Accepted Answer

The answer of You are a manager for a large...

Question 11

Match the internal auditors code of ethics principle to the appropriate definition.
A)Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
B)Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.
C)The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
D)Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined.
-Competency

Accepted Answer

Competency is about applying the necessary knowledge, skills, and experience to perform audit services effectively, which matches option D.

Question 12

Match the internal auditors code of conduct principle with the appropriate definition.
A)Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.
B)Shall be prudent in the use and protection of information acquired in the course of their duties.
C)Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
D)Shall perform their work with honesty, diligence, and responsibility.
-Integrity

Accepted Answer

The principle of integrity in the context of internal auditors' code of ethics emphasizes the importance of honesty and trustworthiness, which establishes the foundation for reliance on their judgment, as described in option B.

Question 13

The ________ of internal auditors establishes trust and thus provides the basis for reliance on their judgment.

Accepted Answer

The answer of The ________ of internal auditors establishes trust...

Question 14

Which principle in the Code of Ethics for internal auditors states that they are to respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so?
A)Confidentiality
B)Competency
C)Objectivity
D)Integrity

Accepted Answer

The principle of confidentiality states that internal auditors must respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so. This includes keeping information confidential even after they have left the organization.

Question 15

Match the internal auditors code of conduct principle with the appropriate definition.
A)Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.
B)Shall be prudent in the use and protection of information acquired in the course of their duties.
C)Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
D)Shall perform their work with honesty, diligence, and responsibility.
-Objectivity

Accepted Answer

Objectivity in the context of internal auditing refers to maintaining an unbiased and impartial viewpoint when conducting audits, which is best described by option A.

Question 16

Match the internal auditors code of ethics principle to the appropriate definition.
A)Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
B)Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.
C)The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
D)Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined.
-Objectivity

Accepted Answer

Objectivity in the context of internal auditing refers to maintaining an unbiased and impartial viewpoint when conducting audits, which is best described by option A.

Question 17

Which Rule of Conduct for internal auditors states that they are to disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review?
A)Objectivity
B)Integrity
C)Competency
D)Confidentiality

Accepted Answer

The answer of Which Rule of Conduct for internal auditors...

Question 18

Document the risk level of the HotSpots on the Books Ga'Lore! invoice DFD. The following coding is used for the HotSpot DFD:
- Red identifies the greatest risk (HotSpots).
-Yellow is for significant risk (warm).
- Green identifies areas with adequate controls (cool).

Accepted Answer

The answer of Document the risk level of the HotSpots...

Question 19

Match the internal auditors code of ethics principle to the appropriate definition.
A)Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
B)Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.
C)The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
D)Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined.
-Integrity

Accepted Answer

The principle of integrity in the context of internal auditors' code of ethics emphasizes the importance of honesty and trustworthiness, which establishes the foundation for reliance on their judgment, as described in option B.

Question 20

Document the risk level of the HotSpots on the Books Ga'Lore! shipping DFD. The following coding is used for the HotSpot DFD:
- Red identifies the greatest risk (HotSpots).
-Yellow is for significant risk (warm).
- Green identifies areas with adequate controls (cool).

Accepted Answer

The answer of Document the risk level of the HotSpots...

Quiz 10: Fraud and Internal Control

Books Ga'Lore! Invoice DFD -Using the Books Ga'Lore! invoice DFD, create an event-agent-datastore-control table.

Which Rule of Conduct for internal auditors states that they will not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization?

Which Rule of Conduct for internal auditors states that they are not to use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization?

Which principle in the Code of Ethics for internal auditors states that the are to make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments?

You are an internal auditor for a company with a policy stating all software on company computers must be approved and installed by the IT department. During the course of an IT audit you discover has installed MP3s on their company computer. What do you do?

Document the preventive and detective controls on the Books Ga'Lore! invoice DFD.

You are a manager for a large public accounting firm and have been assigned to conduct an internal audit for a publicly traded company. You your parents have 75% of their retirement savings in the client company stock. Prepare an email requesting another assignment. Explain your reasons.

The ________ of internal auditors establishes trust and thus provides the basis for reliance on their judgment.

Which principle in the Code of Ethics for internal auditors states that they are to respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so?

Which Rule of Conduct for internal auditors states that they are to disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review?

Document the risk level of the HotSpots on the Books Ga'Lore! invoice DFD. The following coding is used for the HotSpot DFD: - Red identifies the greatest risk (HotSpots). -Yellow is for significant risk (warm). - Green identifies areas with adequate controls (cool).

Document the risk level of the HotSpots on the Books Ga'Lore! shipping DFD. The following coding is used for the HotSpot DFD: - Red identifies the greatest risk (HotSpots). -Yellow is for significant risk (warm). - Green identifies areas with adequate controls (cool).