Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?
When a plant manager from within the organization is hired as a rotational internal auditor within the internal audit activity which area should he most likely be trained for immediately?
Which of the following statements is true regarding corporate social responsibility (CSR)?
Which of the following specifications in an internal audit charter is the most important factor in the internal audit activity’s independence?
Which of the following would be considered advanced expertise which most internal auditors are not expected to possess'?
According to IIA guidance, which of the following actions by the chief audit executive (CAE) best demonstrates the organizational independence of the internal audit activity?
According to IIA guidance, which of the following statements is true regarding internal auditors' knowledge, skills and other competencies?
Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?
Which of the following is the primary engagement responsibility of an entry-level internal auditor?
A chief audit executive (CAE) has no direct access to the board. According to IIA guidance, which of the following is the most appropriate way for the CAE to react?
According to NA guidance, which of the following provides the best evidence of conformance with the Standards with respect to the proficiency required of the internal audit activity?
A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annual snowfall for the coming winter. Which of the following best describes this type of risk?
According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?
An internal auditor believes that the internal audit activity's independence is impaired. Which of the following actions should the internal auditor take first?
During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor's compensation. Which of the following would encourage the internal auditor to be objective in his work?
A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy. Which of the following is the most appropriate idea to include?
Which of the following statements best demonstrates application of due professional care during an assurance engagement?
An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing ( Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations.
According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?
Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?
Which requirement should the chief audit executive consider when communicating results of the quality assurance and improvement program to the board of a large
organization?
In an assurance engagement focused on the adequacy of organizationwide risk management practices, which of the following best describes a primary area of interest for the engagement?
According to NA guidance, which of the following is true regarding typical fraud schemes?
1. A diversion occurs when an employee has an undisclosed personal economic interest in a transaction that adversely affects
the organization.
2. Tax evasion is intentional reporting of false or misleading information on a tax return by an organization to reduce taxes owed.
3. Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s
records.
4, Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services.
A business unit manager was impressed by the competence of the internal auditor who was conducting an assurance engagement in his area and the manager made the auditor an attractive job offer to begin after the audit was completed The auditor later told her auditor in charge that she was considering the offer. Which of the following IIA Code of Ethics principles was most likely violated?
The largest risks facing an organization should be mitigated by which type of controls?
According to IIA guidance, which of the following is true of the internal audit activity’s quality assurance and improvement program?
1 Monitoring the internal audit activity’s performance must be ongoing
2 All aspects of the internal audit activity should be evaluated
3 The requirement for external assessments can be satisfied through self-assessments that are validated by an independent external party
4 The review of assurance services should be the primary focus
An external assessment of an organization's internal audit activity was last completed four years ago Which of the following options would be acceptable this year if the internal audit activity is to fulfill the requirements of the Standards?
An organization is testing a new IT system for digital data storage and security. The internal audit activity has been asked to evaluate the system in a consulting engagement. Although several internal auditors on staff are qualified to perform basic assessments of IT systems, none are familiar with the new system. Which of the following is a legitimate response to the prospective client?
1. Decline the engagement.
2. Proceed with the engagement, performing only those parts of the engagement that the internal auditors are qualified to perform.
3. Accept the engagement and develop the additional competencies in-house prior to the engagement's starting date.
4. Make arrangements to obtain assistance from a competent IT auditing expert.
According to IIA guidance, which of the following is the primary reason the chief audit executive discusses the internal audit charter with senior management and the board?
According to IIA guidance, which of the following best describes expense reimbursement fraud'?
Guidelines need to be set for various levels of suspected fraud within an organization and when it would be reported to the audit committee. Which of the following would be
reported at the next meeting?
According to IIA guidance, which of the following actions best demonstrates that due professional care has been considered by the internal audit activity when conducting a review of an organization's assets?
Which of the following is the first step in the process of identifying relevant fraud risk factors?
An organization's board recommends revising the internal audit charter by adding requirements regarding the hiring and compensation of the chief audit executive as well as information on approving the internal audit budget. Which of the following is the board most likely defining in the charter?
Which of the following statements about internal audit consulting engagements is true?
Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?
Why is it imperative for the chief audit executive to track and develop the educational qualifications of internal audit staff?
Which of the following statements is true regarding consulting engagements?
According to IIA guidance, which of the following statements is true regarding the internal audit activity’s responsibilities in providing consulting services?
An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International
Standards for the Professional Practice of Internal Auditing ( Standards) Which of the following justifies inclusion of this clause in the reports?