1.What are the components of the internal audit value proposition set forth by The
IIA?
-The internal audit value proposition is composed of:
a. Assurance – internal audit provides assurance on the
organization’s governance, risk management, and control
processes in order to achieve its objectives.
b.Insight – internal audit provides insight and recommendations
based on analyses and assessments of data and business process
as a catalyst for improving the effectiveness and efficiency of the
company.
c.Objectivity – internal audit is committed to integrity and
accountability to provide value to governing bodies and senior
management as an objective source of independent advice.
2.How does The IIA define internal auditing?
-According to The Institute of Internal Auditors, internal auditing is 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.
3.What are the four categories of business objectives as discussed?
-The four categories of business objectives are:
a.Strategic objectives – these pertains to goals set by the
management specifically related to stakeholders.
b.Operations objectives – these pertain to the effectiveness and
efficiency of the entity’s operation.
c.Reporting objectives – these pertain to the reliability, timeliness,
and transparency to internal and external financial and nonfinancial
reporting.
d.Compliance objectives – these pertain to adherence to laws and
regulation to which the entity is subject.
4. What are the definitions of governance, risk management, and control?
-Governance is the process conducted by the board of directors to
authorize, direct, and oversee management towards the achievement of
the objectives of the organization
-Risk management is the process conducted by management to
understand and deal with the risks and opportunities that can possibly
affect the organization’s ability to achieve its objectives
-Control is the process conducted by management to mitigate risks to
acceptable levels.
5.What is the difference between internal assurance services and internal
consulting services?
-Assurance services refers to an objective examination of evidence in order
to provide an independent assessment of governance, risk management,