Using the internal audit department to coordinate regulatory examiners' efforts is beneficial to the organization because internal auditors can:

Influence regulatory interpretation of law to better match corporate practice.
Recommend changes to the scope of the regulatory examiners' review.
Perform fieldwork for the regulatory examiners and thus shorten the regulatory examiners' review.
Supply evidence of adequate compliance testing through internal audit workpapers and reports.

Answer(s): D

Internal auditors can benefit from a strong relationship with the external auditors because external auditors can:

Provide internal auditors with an independent and knowledgeable viewpoint.
Concur with the internal auditors' reports and thus improve the quality of assurance provided to
management.
Increase the effectiveness of internal control sampling techniques.
Assist the internal auditor by providing information obtained from similar audits with other clients.

Answer(s): A

Risk assessments can vary in format, but generally include.

A description of identified risks.
II. Tests of audit controls.
III. A system of rating risks.
IV. Sample size identification.
I and IIonly
I and IIIonly
I,III,and IVonly
II,III,and IVonly

Answer(s): B

Risk assessments are valuable to the internal audit activity's planning process because they assist
in:

Eliminating all areas with low risk from the audit plan.
Educating management on the importance of keeping the internal audit activity informed of organizational changes.
Identifying the audit universe or auditable activities that need to be reviewed.
Identifying risks that management and the internal auditors have overlooked.

Answer(s): C

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