Under IIA’s International Standards who is responsible for managing an organization’s internal audit activity?
Chief Audit Executive
Under the Attribute Standards related to an internal audit activity’s Quality Assurance and Improvement program must include periodic external assessments how often?
At least every five years
Four primary themes associated with the Attribute Standards (IIA)
- Purpose, authority, and responsibility
- Independence and objectivity
- Proficiency and due professional care
- Quality assurance and improvement program
What is the focus of the Attribute Standards (IIA)?
involve characteristics applicable to individuals and internal audit activities
What are the seven primary Performance Standards (IIA)?
- Managing the internal audit activity
- Nature of work
- Engagement planning
- Performing the engagement
- Communicating results
- Monitoring progress
- Communicating the acceptance of risks
What does Standard 2000, “Managing the Internal Audit Activity,” state?
The chief audit executive must effectively manage the internal audit activity to ensure it adds value to the organization
What types of services do the Implementation Standards (IIA) distinguish between?
- assurance services (designated by “A”)
- consulting services (designated by “C”)
What is the “Intercept” when it comes to the slope formula?
the value of the dependent variable at the lowest value of the independent variable (which is often zero)
in other words, the point at which the dependent variable intersects the vertical (Y) axis, which is where the independent variable (horizontal x axis) has its lowest value
What is macroeconomics?
The study of economic activities of an entire nation or major sectors of a national economy.
Such matters as demand/supply, employment/unemployment, and inflation/deflation for an entire country
Economics
concerned with allocation of scarce resources among alternative uses
What is microeconomics?
economic activity at the level of individual-decision making unit
Graph
Diagram that shows relationship between two sets of values (or variables)
What does a positive slope indicate?
the two variables move in the same direction
What does a negative slope indicate?
the two variables move in opposite directions
What does a neutral slope indicate?
one variable doesn’t change with changes in the other variable
What is a time series graph?
Shows the change in a variable over time (the x-axis)
the horizontal axis measures time
In a free-market economy what should be the least significant factor in determining resource allocation and use?
government regulation of commerce
What is a Command economic system?
government determines the production, distribution, and consumption of goods and services
What is a Market economic system?
Individuals, businesses, and other distinct entities determine the production, distribution and consumption of goods and services
What is the Free Market Model?
- individuals provide economic resources to business firms (labor, capital)
- business firms provide money payment for resources to individuals (wages, interest)
- individuals provide money payment for goods/services to business firms (purchase price)
- business firms provide goods/services to individuals (products)
Why is the demand curve negatively sloped?
- the quantity demanded is lower at higher prices and increases as price decreases
- the quantity demanded varies inversely with price along a given demand curve
- x = quantity; y = price
- it is downward sloping
What is a complementary commodity?
One which is used together with another commodity.
Since quantity is a function price, what type of variables are they?
- price is an independent variable
- quantity is a dependent variable
What does an increase in demand cause?
a shift of the demand curve - up and to the right
