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Question 8

According to the International Professional Practices Framework, internal auditors should possess which of the following competencies?

I. Proficiency in applying internal auditing standards, procedures, and techniques.

II. Proficiency in accounting principles and techniques.

III. An understanding of management principles.

IV. An understanding of the fundamentals of economics, commercial law, taxation, finance, and quantitative methods.

    Correct Answer: D

    Internal auditors, according to the International Professional Practices Framework, should possess proficiency in applying internal auditing standards, procedures, and techniques (I). They should also have an understanding of management principles (III) and an understanding of the fundamentals of economics, commercial law, taxation, finance, and quantitative methods (IV). While proficiency in accounting principles and techniques (II) is more specifically required for accountants, internal auditors should have a broader understanding across various domains. Therefore, the correct competencies align with options I, III, and IV.

Discussion
cidifiveOption: C

I. PROFICIENCY in applying internal auditing standards, procedures, and techniques. II. An APPRECIATION in accounting principles and techniques. III. An UNDERSTANDING of management principles. IV. An APPRECIATION of the fundamentals of economics, commercial law, taxation, finance, and quantitative methods. Answer should be C.

Ivana2000

to understand means to be able to process the meaning of. like "verstehen" in german. to appreciate something means to recognize the value of something good...

thabashOption: D

because internal auditor must have Proficiency in applying internal auditing standards, and understanding in other fields

rizipakistaniOption: C

As per IPPF, Internal Auditors are expected to be proficient in applying internal auditing standards, procedures, and techniques. IA are not expected to be proficient in accounting, economics, commerce, IT etc. but should have an understanding of these stated areas. The trick in this question lied in the word understanding.

chung002

key word is "understanding" is not equal to proficiency. This question is designed to confuse. Does the IPPF specifically state commercial law etc

vidhya19Option: C

The answer should be C right ?

ShekhorOption: C

My answer was I and III but I did not understand the reason for adding another number IV. can you explain it.

ThilaOption: D

I think the trick lies with the word "understanding" - you are required to have some familiarity with those aspects of III. Whereas II is talking about "proficiency" which is more applicable to external auditors.

Thila

*aspects of IV

AdarnoOption: C

I'm surprised with the answer. I think it should be C. Why is it D?

SAJYOption: C

Answer is C? Appreciation of fundamentals of economics, commercial law..ect ?