Chapter 1: Essential of Internal Auditing
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I missed this question. How is the scope of internal auditing as it has developed by evaluating “all” risk management, control, and governance system? Mainly, the internal audit department may not know “all” of the related risk management, control, and governance processes.8. Question ID: CIA 1193 I.1 (Topic: A. Purpose, Authority, and Responsibility)Internal auditing is a dynamic profession. Which of the following best describes the scope of internal auditing as it has developed to date?
- A. Internal auditing involves evaluating compliance with laws, regulations, and contracts.wrong
- B. Internal auditing involves evaluating the effectiveness and efficiency with which resources are employed.
- C. Internal auditing has evolved to verifying the existence of assets and reviewing the means of safeguarding assets.
- D. Internal auditing has evolved to evaluating all risk management, control, and governance systems.correct
Your Incorrect Answer Explanation for A:
Internal auditing involves much more than just evaluating compliance with laws, regulations, and contracts.
Correct Answer Explanation for D:
The Institute of Internal Auditors (IIA), the U.S. professional organization of internal auditors, has defined internal auditing as: “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 governance processes.”
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