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?
During his quarterly meeting with the chief audit executive (CAE), it was recommended to an experienced staff internal auditor that he complete a communication and leadership training. The training was also included in the auditor’ yearly professional development plan. The auditor is confused, as he believes he should attend trainings on technical areas rather than spend time on communication and leadership.
According to IIA guidance, which of the following statements regarding this scenario is true?
Which of the following actions is the internal audit activity best positioned within the organization to perform?
Which of the following is (he most effective way any organization can ensure proper governance over its internal controls?
A chief audit executive (CAE) recruited a few new internal auditors to reduce the resource gaps identified in this year ' s internal audit plan. One of the new recruits has several years of experience with the organization. Ten months ago. she served as a senior supervisor in the finance department. However, for the past 10 months, she has been helping the organization with implementing a new IT system. What approach should the CAE take for the upcoming financial statement controls audit?
Which of the following is true regarding the use of a formal risk management framework?
1. It facilitates a methodical approach to risk mitigation.
2. It defines and standardizes the terminology used in risk communication.
3. It establishes the risk tolerance levels to be accommodated in the strategy.
4. It facilitates the alignment of risk mitigation strategies with management priorities.
During the planning stage of an assurance engagement, a payroll clerk informed the internal auditor that he is often asked to add new employees to the payroll without any formal new-hire documentation from human resources. The auditor is concerned that this increases the risk for fraud. To complete engagement planning, which of the following is the most appropriate next step for the auditor to take?
The internal audit activity is asked to provide consulting services regarding the risks related to implementing a proposed new Inventory management system. Which of the following would be a key consideration of the internal audit activity in accepting this engagement?
Which of the following would a chief audit executive most likely use to identify a need for improvement in a staff internal auditor ' s business acumen?
Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?
An internal auditor in a newly established internal audit activity identifies many control weaknesses and raises a number of high-priority recommendations in her first few audit engagements. The internal auditor is concerned that there seems to be a poor understanding by management of risk and control. Which of the following is the most likely reason for this?
During an audit of company expenses, the internal auditor performed a test using data analytics and identified a violation of the company ' s expenses policy. The auditor who discovered the issue considered it a potential fraudulent transaction and informed the chief financial officer (CFO). The CFO dismissed the concern because he did not understand the data analytics test that was performed and the transaction was of a low value. Given this situation, which skills or competencies should this internal auditor seek to improve?
According to IIA guidance, which of the following is necessary for internal auditors to comply with the requirements for proficiency?
1. Sufficient consideration of current activities, trends, and emerging issues to effectively carry out their professional responsibilities.
2. Ability to provide relevant advice and recommendations to management and the board.
3. Understanding of key IT risks and controls and the ability to identify fraud using technology-based audit techniques.
4. Knowledge, skills, and other competencies necessary to perform individual responsibilities during the engagement.
According to NA guidance, which of the following conditions would enhance the independence of the internal audit activity?
Which should the internal auditor first consider when assessing fraud risks during an engagement?
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
According to IIA guidance, an internal audit charter should detail which of the following?
Which of the following controls would be most useful to prevent an employee from using the organization ' s funds for inappropriate expenditures and falsifying financial records to conceal the fraud?
According to IIA guidance, which of the following would the internal audit activity examine in order to evaluate the organization ' s governance process for strategic and operational decisions ' ?
