Explanation:
Microsoft Excel is not typically considered an audit management system, although it can be used for certain aspects of audit management. Excel is a spreadsheet software program for organizing, analyzing, and manipulating data. While it can create checklists, record findings, and track audit progress, it lacks many specialized features in dedicated audit management systems.
Explanation:
"Biased" is not an adjective found in the IIA's definition of internal audit. The IIA's definition of internal audit is as follows:
"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."
Explanation:
"Analytool" is not a well-known data analytics software program.
Explanation:
"Truthiness" is not one of the five assertions of internal audit.
Explanation:
The piece of legislation passed in 2002 that dramatically increased the need for internal auditors is the Sarbanes-Oxley Act (SOX). The US Congress enacted the SOX Act in response to accounting scandals at Enron, WorldCom, and other companies. SOX introduced significant changes to financial reporting requirements and imposed stricter accountability on corporate executives and board members for the accuracy and reliability of financial information. The Act also requires that public companies establish and maintain effective internal controls over financial reporting, leading to a significant increase in demand for internal auditors to assess and test these controls.
Explanation:
The Sarbanes-Oxley Act of 2002 introduced several punishments for CFOs and CEOs if their financial statements misled investors. One of the punishments was the possibility of prison time. Specifically, Section 906 of the Act states that any CEO or CFO who certifies a misleading financial report can face up to 20 years in prison and fines of up to $5 million.
Explanation:
The international body that publishes the standards used by internal auditors is The Institute of Internal Auditors (IIA). The IIA is a professional organization that provides guidance, training, and certification for internal auditors. The IIA has developed and published a set of international professional standards, the International Standards for the Professional Practice of Internal Auditing (Standards). These standards are widely recognized as the authoritative framework for internal auditing and are used by internal auditors worldwide.
