Reference no: EM133227794
1. How do The IIA's quality assurance and improvement program professional standards (Standard 1300) apply to a fully outsourced internal audit function? Specifically discuss the applicability of, and compliance requirements with, the external assessment procedures (Standard 1312).
2. Discuss the various options for properly positioning an internal audit function within an organization and the related advantages and disadvantages for each identified option. What are the primary factors an organization should consider when establishing an effective internal audit function? Where should an effective internal audit function be positioned within an organization?
3. Should the CAE opine on the design adequacy and/or operating effectiveness of the system of internal controls regarding:
- Reliability of financial reporting? Why or why not?
- Effectiveness and efficiency of operations? Why or why not?
- Compliance with applicable laws and regulations? Why or why not?
4. Many organizations implement assurance layering strategies to mitigate the risks they face to acceptable levels. One such strategy is the Three Lines of Defense model.
a. Describe the first and second lines of defense included in this model.
b. Explain what distinguishes the third line of defense from the first two.
c. Discuss how the three lines of defense are coordinated.
d. Identify the external sources of assurance that organizations use to augment their internal lines of defense.
5. Per IIA Standards, internal audit functions are required to evaluate and contribute to the improvement of their organizations' governance, risk management, and control processes.
a. Provide several examples of governance responsibilities an internal audit function can assume.
b. Describe 1) the risk management activities that are appropriate for an internal audit function to perform and 2) the risk management activities an internal audit function should avoid.
c. Internal audit functions are responsible for evaluating the design adequacy and operating effectiveness of controls. Discuss the areas of control that fall within the scope of internal auditors' evaluation responsibilities.