During an audit of the purchasing department, an internal auditor identifies significant issues that could affect the organization's financial reporting. Management disagrees with the audit results. Which of the following responses best demonstrates the internal auditor has the necessary competencies related to professional Judgment and conflict management?
According to IIA guidance, which of the following would be included in an internal audit charter to help establish the authority of the internal audit activity?
What is the primary reason for establishing a continuing professional development program within an organization's internal audit activity?
According to IIA guidance, which of the following is the strongest indicator of deficiencies in the risk management process?
A manufacturer of power tools is experiencing regular fluctuations in the price of electrical power which is having a serious impact on the bottom line. Which of the following would be the most effective risk strategy to reduce the impact of these fluctuations?
According to the Standards, which of the following is a requirement for internal audit professional development plans?
Which of the following statements is true with regard to the quality assurance and improvement program (GAIP)?
A newly hired internal auditor is performing an engagement that requires significant IT expertise that he does not possess. If the auditor does not alert the chief audit executive about his lack of expertise and decides to perform the engagement anyhow, which principle of the IIA's Code of Ethics would he violate?
Which of the following is an advantage of using nongovernmental organization (NGO) members on an assurance team when auditing corporate social responsibility?
During fieldwork, an internal auditor located a significant internal control issue. Without identifying the origins of the issue, the auditor concluded the engagement and included the issue in the final audit report. To enhance audit quality, which of the following skills should the internal auditor improve?
Considering the concepts of organization wide risk management and the system of internal controls, the internal audit activity as a whole can be considered which of the following types of control?
A technology company recently hired an entry-level internal auditor. To achieve conformance with the Standards, which of the following must the newly hired internal auditor possess?
The chief audit executive (CAE) planned an in-person group training to help internal auditors perform onsite inspections of an automobile manufacturing facility. The training would have allowed the auditors to better understand the production of the organization's automobiles. However, a global health crisis has impacted the training by prohibiting in-person contact at the facility. Which of the following could the CAE use to provide auditors with a better understanding of the organization s production process?
In which of the following scenarios would the internal auditor’s objectivity be best protected?
Which of the following would be the best choice for a continuing professional development requirement for a newly created internal audit activity?
According to MA guidance, which of the following is the most accurate statement regarding the internal audit charter?
Which of the following is the best reason why the engagement supervisor should take care in explaining to local management the criteria that will be used to measure the effectiveness of the control environment?
According to NA guidance which of the following should be documented in the internal audit chatter?
During an assurance engagement an internal auditor discovered that risk limits risk limit were set for a new market expansion project Management of the area under review was eager to comply and submitted a potential risk limit value for the auditor's review and approval. Which of the following would be an appropriate course of action for the auditor to take?
The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently.
Which common characteristics of fraud will the practice and policy most likely reduce?
Which of the following is the best example of a risk appetite statement concerning an investment portfolio?
Which of the following best demonstrates organizational independence of the internal audit activity?
Which of the following should an internal auditor take into consideration when making a judgement regarding whether management selected appropriate risk responses?
During the closing meeting of a procurement audit, the business manager disagrees with the observation presented by the engagement supervisor and accuses the team of not understanding the procurement objectives The engagement supervisor blames the manager for impeding the audit What skillset should the chief audit executive utilize to manage this situation?
Which of the following is considered to be a threat to the internal auditor's objectivity?
Which of the following scenarios is a characterize of an organization with a highly effective ethical culture?
Which of the following best demonstrates the board of directors' governance over internal control?
An engagement supervisor noted that an internal auditor's personal relationship with a process owner resulted in the auditor providing a favorable and partial assessment during an audit within that process owner's area. According to MA guidance, which of the following should be used to manage this impairment?
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?
Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?
Under which of the following circumstances should the final audit report include a disclosure of nonconformance with the Standards?
Which of the following statements is true regarding the role of the internal audit activity in the organization's risk management process?
According to MA guidance, which of the following best describes how often the chief audit executive should review the quality assurance and improvement program of the internal audit activity?
Which of the following scenarios best illustrates the concept of due professional care?
The chief audit executive (CAE) has hired a new internal auditor who was immediately assigned to a procurement function audit. Because the new auditor's name is similar to that of the procurement manager, some staff members think the two are related, although they are not. Which of the following actions is most appropriate for the CAE to take?
To achieve conformance with the Standards, the chief audit executive must include which of the following activities in the quality assurance and improvement program (QAIP)?
A third-party provider's questionable labor practices have exposed the organization to reputational risks and regulatory risks. Which of the organization's risk management practices was most likely ineffective?
If the skills and competencies are not present within the internal audit activity to complete an ad-hoc assurance engagement, which of the following is an acceptable
resolution?
Which of the following procedures will best help an internal auditor assess operating effectiveness of fraud prevention and detection controls?
Applying ISO 31000, which of the following is part of the external context for risk management?
While conducting an engagement in the procurement department, the internal auditor noticed that the department head’s travel reports showed minor travel expenses, and there were no charges for hotels, meals, or transportation. However, the auditor knew that the department head frequently traveled worldwide to meet with suppliers and visit their production sites. Which of the following would be the most appropriate next step for the auditor?
Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?
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?
Which of the following must be in existence as a precondition to developing an effective system of internal controls?
An internal auditor is performing testing to gather evidence regarding an organization’s inventory account balance and is mindful of the possibility that the sample used might support the conclusion that the recorded account balance is not materially misstated when, in fact, it is. The auditor's concern best describes which of the following risks?
Which of the following documents are internal auditors most likely to be asked to sign as a demonstration of due professional care?
A description of their job responsibilities,
Management assessed the organization’s risk of expanding operations into a new, but volatile, region and began looking for a compatible local partner to manage sales and distribution. Which of the following best describes this risk management technique?
Which of the following situations undermines the independence of the internal audit activity?
According to the 11A Code of Ethics, which of the following is required with regard to communicating results?
According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?
Which of the following best describes the Standards requirement for collective proficiency of the internal audit activity?
Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?
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?
According to NA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?
Which of the following would be considered a violation of The HAfs mandatory guidance on independence?
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?
A chief audit executive (CAE) identifies that the internal audit activity lacks a necessary skill to perform a management request for a consulting engagement. According to IIA guidance, which of the following is the most appropriate action the CAE should take regarding the request?
Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?
When taken by a chief audit executive, which of the following actions would be most likely to prevent division management from exaggerating sales reports?
1. Announcing a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.
2. Asking the president and the board to issue a statement of corporate policy stressing the importance of accurate management
reporting and the negative consequences of intentional misreporting.
3. Setting up a hotline for employees to report fraudulent behavior anonymously,
4. Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of sales.
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 most accurately describes the role of the board when it comes to organizational governance?
Which of the following would be considered a monitoring activity in organization wide risk management?
Which of the following should a general internal auditor be able to characterize as an IT-related risk?
Which of the following best illustrates the application of due professional care during an audit of the procurement department?
Which of the following could increase risks to the organization’s control environment?
Which of the following types of policies best helps promote objectivity in the interna! audit activity's work?
At a conference, an interna! auditor presented a new computer-assisted audit technique developed by his organization. The presentation included sample data derived from performing audit engagements for the organization. Travel costs were paid by the conference organizers, and the trip was approved by the chief audit executive (CAE).
However, neither management nor the CAE was aware that the internal auditor would be making a presentation based on work completed for the organization. According to IIA guidance, which of the following statements is most relevant regarding the actions of the auditor?
If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?
Senior management has decided to adopt the key principles approach of the ISO 31000 risk management framework. According to IIA guidance, which of the following principles is most appropriate when implementing the risk management process in a dynamic agency?
Which of the following controls would best mitigate the risk of fraud in the bidding process?
A series of incidents over the past year reveals several members of senior management possess a limited understanding of the concept and impact of fraud. Which of the following would be the most effective way to approach this issue?
An internal auditor believes that the internal audit activity's independence is impaired. Which of the following actions should the internal auditor take first?
According to IIA guidance, which of the following statements is true regarding due professional care?
For a new board chair who has not previously served on the organization's board, which of the following steps should first be undertaken to ensure effective leadership to the board?
Prior to commencing a financial compliance engagement, the engagement supervisor reads the business plan for the finance department and meets informally with the director to learn more about any key issues. Which of the following competencies is the engagement supervisor demonstrating?
Which of the following is true regarding the stakeholder theory of corporate social responsibility?
Which of the following is an indicator that the organization s risk management process is effective?
The internal audit activity is responsible for conducting fraud investigations. A potential fraud instance was identified during an audit engagement. The chief audit executive appoints a lead investigate. Which of the following would most likely be the next step?
An organization’s board of directors has decided that the internal audit activity must have greater access to different pans of the organization in order to perform their assurance work effectively Which of !he following areas is the board seeking to improve by making this change?
Which of the following would most likely be classified as a consulting engagement?
In its five years of existence, an internal audit activity conducted a single internal assessment of its quality assurance and improvement program (QAIP). The results of that assessment showed that the internal audit activity did not conform with the Standards. Prior to this, an external assessment of the internal audit activity's QAIP was conducted, which reported that the internal audit activity was in conformance with the Standards. Considering the two assessments, what would be the internal audit activity's current state of conformance with the Standards?
In addition to her internal audit activity responsibilities, the chief audit executive has been asked to oversee the organization's insurance function. Which of the following responses is most appropriate?
Which of the following engagements would be considered an appropriate consulting service?
Which of the following statements is true regarding an organization's code of ethics?
Which of the following is a key determinant used by external auditors to decide whether they can rely on work performed by the internal audit activity?
An organization's board has approved an expansion plan into a new market. The board acknowledged that if the expansion is not successful, the organization would encounter large monetary losses consisting of legal fees, research and development costs, rent expenses, and labor fees. Which of the following has the board approved?
Which of the following skills is critical for assessing corporate social responsibility through a self-assessment?
In which of the following situations would the organizational independence of an internal audit activity be impaired?
Which of the following actions best demonstrates an internal auditor exercising due professional care?
Which of the following statements best describes how the internal audit activity obtains reasonable assurance that significant risks in the organization are identified and assessed?
IT management requires all employees in the IT department to attend annual training on the department’s mission values and key performance measures This activity is designed to prevent which of the following conditions?
Which of the following statements best represents the duo professional care that is required of internal auditor’s?
The internal audit activity was asked to conduct an investigation for potential fraud in the treasury department and subsequently contracted with a forensic accountant to join the team for the engagement. Which of the following parties has the primary responsibility for resolving any fraud incidents found as a result of this investigation?
Which of the following would best serve to deter unethical behavior and encourage internal auditors to be objective in their work?
Which of the following is true regarding risk analysis?
Which of the following statements is true regarding control activities?
In order for an internal auditor to assess the opportunity for fraud to occur in an organization, which of the following does the auditor first need to understand?
According to IIA guidance which of the following statements regarding ethics is true?
Which of the following concepts is emphasized in the Mission of Internal Audit?
Which of the following best describes a purpose for the internal audit charter?
Which of the following statements is true regarding intangible assets?
Which of the following is an example of the chief audit executive (CAE) demonstrating due professional care?
Which of the following qualifies as an acceptable consulting service provided by the internal audit activity?
Which of the following demonstrates that the internal audit activity exercises due professional care?
Which of the following best demonstrates organizational independence of the internal audit activity?
Which of the following scenarios demonstrates nonconformance with the Standards?
Which of the following is an appropriate roe fa the internal audit activity?
As a result of a high-profile processing error, respective business unit managers are implementing new controls. The internal audit team was asked for their advice regarding the controls. The objective of this consulting engagement would be determined by which of the following?
While preparing the audit plan for an automobile manufacturing company, the chief audit executive (CAE) noted that the company's engineering department received a high risk ranking. However, the internal audit activity is understaffed, and current staff do not possess the necessary skills to adequately assess the effectiveness of the engineering department. What is the most appropriate course of action for the CAE to take?
The accounting department asked the chief audit executive (CAE) to perform a review of suspicious transactions The CAE was an accounting manager for the organization six months ago How should she respond to the request?
The internal audit activity was denied access to expenditure and budget reports because they were considered to be confidential. This situation would result in which of the following limitations of the internal audit activity?
Which of the following is the internal audit activity expected to do with respect to the organization's governance processes?
Which of the following should be part of the internal audit activity's duties?
Which of the following situations is most likely to threaten the independence of the internal audit activity?
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?
According to IIA guidance, which of the following statements is true regarding consulting engagements performed by the internal audit activity?
In a retail organization, sales teams compete with each other to achieve and exceed sales targets. Each quarter, the members of the top sales team receive a bonus. In this environment, management should closely monitor for the emergence of which of the following potential risks?
An internal audit of warehouse inventory revealed no material deficiencies. However, management later discovered fraud, which occurred during the period that was audited, and determined that a major control deficiency allowed the fraud to occur. Given management's discovery, which of the following statements is valid?
Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?
Which of the following practices is generally most effective to protect internal audit objectivity?
Which should the internal auditor first consider when assessing fraud risks during an engagement?
According to the IIA Code of Ethics, which of the following best describes the conduct of an internal auditor who demonstrates the principle of competency?
An internal auditor is assessing the effectiveness of the organization's risk management practices. She checks to see whether risk management is an integral part of decision making and whether risk management is transparent, responsive to change, and addresses uncertainty. According to IIA guidance on risk management frameworks, which of the following approaches is the auditor most likely using?
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?
Which of the following describes a responsibility of operating management in an organization's corporate social responsibility (CSR) efforts?
The internal audit activity is undergoing a self-assessment as part of its quality assurance and improvement program. Which of the following observations must be addressed in order for the internal audit activity to achieve conformance with the Standards?
During a payroll audit, a staff internal auditor suspects that signatures on some of the documents being sampled for examination are not authentic. Which of the following actions should the auditor take before proceeding with the examination?
According to HA guidance, which of the following is true regarding independence and objectivity for small internal audit activities?
Which of the following is (he most effective way any organization can ensure proper governance over its internal controls?
A financial services organization's board is assessing increased regulations and its effect on current industry lending practices. Which of the following committees would help the board identify and assess the effects of the increased regulations?
An audit engagement required that an internal auditor, using available tools, test a transaction population for a period The auditor decided to test a sample of transactions rather than the full population.
Results of the audit were reported as satisfactory to management. Subsequent to the audit report, fraud was discovered in the area audited and was found to include transactions that were in the relevant transaction population not tested by the auditor. The auditor later disclosed that he decided to test a sample because it was representative of the population and facilitated quicker testing. Which of the following skills below, if improved, would most likely have prevented this situation?
Which of the following is true about corporate social responsibility (CSR)?
Which of the following is an indicator of ineffective third-party risk management?
Due to extreme liquid fuel price fluctuations, management decided to designate a specific price below which liquid fuel shall not be sold to customers, but instead shall be pumped into storage tanks. Which of the following risk responses has management selected?
The chief audit executive (CAE) has decided to outsource an audit of the organization's cloud governance in the annual audit plan. Why would the CAE outsource this audit?
Which of the following is the primary benefit of establishing a formal training program for the internal audit activity?
Which of the following statements best represents the due professional care that is required of internal auditors?
Which of the following survey questions would be most effective to identify ethics violations within the organization?
The accounting department asked the chief audit executive (CAE) to perform a review of suspicious transactions. The CAE was an accounting manager for the organization six months ago.
How should she respond to the request?
According to The IIA’s Code of Ethics, which of the following best describes the principle of integrity?
Which of the following is an indicator that the organization's risk management process is effective?
Which of the followIng would permit an internal audit activity to use the statement "conducted m conformance with the International Standards for the Professional Practice of Internal Auditing m audit reports?
Which of the following tests would most likely help discover a fictitious invoice?
What is the primary purpose of The IIA's Code of Ethics?
Which of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?
An internal auditor is reviewing employee travel expenses from the previous six months for fraud. Which of the following tests would best detect instances where personal travel has been claimed?
Which of the following items related to the quality assurance and improvement program should the chief audit executive report to the board?
The internal audit activity conducted an organization wide risk assessment. One of the most significant risks identified is associated with the oil price market. The chief audit executive (CAE) is considering including in the annual audit plan an assessment of the effectiveness of oil price risk management. The manager responsible commented that the assessment was not needed, as market risks were regularly addressed by the financial risk committee. If the CAE decides to include this activity in the annual audit plan anyway, how should it be recorded?
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 statements is true regarding consulting and assurance engagements performed by the internal audit activity'?
Which of the following statements is true regarding the disclosure of results of the quality assurance and improvement program?
An accounts payable clerk who has access to the vendor master file replaced the payment details of a legitimate vendor with those of a friend before processing the payment through the organization's cashier. Immediately afterward, he restored the original vendor information. Which of the following controls could have prevented this fraud?
An internal audit team analyzed the organization's value-at-risk model during an assurance engagement and suggested several useful improvements. Management was impressed by the internal audit team’s work and requested additional actions. Which of the following requested actions would impact internal audit independence most severely if fulfilled?
The internal audit activity audited an organization's risk management function multiple times, and the recommendations that were made remain unaddressed by the head of risk management. Which of the following would be the next step for the internal audit activity?
Which of the following is the best way for internal auditors to demonstrate their proficiency to effectively carry out their professional responsibilities?
Due to the increased operational responsibility of the CEO the chief audit executive (CAE) of an organization currently reports to the chief financial officer (CFO) What is the likely impact of such a situation?
A whistleblower reveals to the chief audit executive (CAE) detailed allegations of potential fraud at the senior management level. Although the CAE has some experience in the area, she chooses to retain an external fraud expert to conduct the investigation. When asked by the director of finance to defend the expenditure, which of the following statements represents the CAE's best response?
According to IIA guidance, which of the following best describes the chief audit executive s responsibility for confirming to the board the organizational independence of the internal audit activity'?
Following a quality assurance review of a small internal audit activity, the external reviewer and the chief audit executive (CAE) cannot agree on the importance of several deficiencies noted during the review. Which of the following would be the most appropriate next step for the reviewer to take?
According to The IIA’s Code of Ethics, which of the following scenarios offers the best example of violating the principle of integrity?
The internal auditor obtained large volumes of transaction history data for accounts on which he suspected that some fraudulent transactions occurred. Which of the following actions best demonstrates due professional care by the internal auditor?
According to IIA guidance, which of the following statements is true regarding risk management in an organization?
Which of the following best demonstrates that an internal auditor is applying due professional care when planning an assurance engagement?
Which of the following corporate social responsibility strategies is associated with responding to outside pressure by assuming additional responsibility?
To assure that the technical proficiency of internal auditors is appropriate for the audit engagements to be performed, a chief audit executive should:
Which of the following best demonstrates the authority of the internal audit activity?
Which of the following situations undermines the independence of the internal audit activity?
Which of the following best describes organizational governance processes?
A significant number of employees expressed concerns of a hostile work environment within a large manufacturing plant, which is in contrast to the organization's stated culture of tolerance and open communication. Which of the following approaches would be most effective for an internal auditor to assess whether the organization supports a culture of tolerance and open communication?
A large commercial bank was fined by regulators for fraudulent practices when employees, over a period of time, opened thousands of new accounts for existing clients without the clients' consent. It was later found that employees were given unrealistic new account targets and were aggressively monitored by management on a daily basis.
Which of the following controls would have most likely reduced the likelihood of the fraudulent practice from occurring?
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'?
According to IIA guidance, which of the following best describes expense reimbursement fraud?
The internal audit activity is performing an assessment of an organization's ethics program, and the engagement scope specifies a focus on the training program's design. According to IIA guidance, which of the following questions would be the most relevant?
1. Does the training include situations that require an ethical decision?
2. What percentage of employees have taken the training?
3. What are the results of the employee assessment of the organization's ethical climate?
4. Does the instructor provide feedback on the thought process to reach an ethical resolution?
Recently an organization’s internal audit activity discovered ghost employees who receive payments Senior management decides to strengthen the internal control measures to address this Which of the following is considered an effective control to mitigate payments to ghost employees?
Six months after an employee was transferred to the internal audit activity his former operating manager requested that he return to assist a project team with the evaluation of a new pricing module for the organization’s online ordering system According to IIA guidance which of the following statements is true?
In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?
Which of the following types of fraud tests would be most effective if an internal auditor was looking for possible fictitious vendors?
According to IIA guidance, which of the following is most critical to ensuring that an organization's risk management program remains effective over time?
Which of the following is a greater consideration for internal auditors when they are performing a consulting engagement than when they are performing an assurance engagement'?
With regard to IT governance, which of the following is the most effective and appropriate role for the internal audit activity?
Which of the following should catch the internal auditor's attention as a potential red flag for fraud?
Which of the following is a consulting service the internal audit activity can perform with respect to the organization's risk management?
An engagement supervisor noticed that a newly hired internal auditor struggles with large data samples because he appears reluctant to apply available spreadsheet statistical functions and tends to perform testing of transactions manually In which of the following areas does the internal auditor most likely need training?
An IT contractor applied for an internal audit position at a bank. The contractor worked for the bank's IT security manager two years ago. If the audit manager interviewed the contractor and wants to extend a job offer, which of the following actions should the chief audit executive pursue?
According to The IIA’s Code of Ethics, which of the following statements is true?
When would on-the-job training be more effective?
Which of the following parties would be responsible for ongoing monitoring of the organization's corporate social responsibility activities to reduce its carbon footprint?
In which of the following audits would the internal auditors most likely contribute to the assessment of organizational governance?
In which of the following scenarios is the internal auditor in conformance with The IIA's Code of Ethics and the Standards?
Which of the following describes a primary responsibility for the internal audit activity in helping management maintain effective controls?
Which of the following can be used to minimize employees’ resentment of controls?
According to IIA guidance, which of the following statements is true regarding mentoring programs designed to assist internal auditors with their professional development?
Which of the following best describes the board’s role in establishing effective organizational governance?
Which of the following statements is true regarding corporate social responsibility (CSR)?
According to IIA guidance, which of the following best demonstrates how the chief audit executive may ensure that due professional care is applied?
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?
Which of the following statements is true regarding organizational culture and an audit of the control environment?
The internal audit activity is responsible for which of the following actions related to an organization’s internal controls?
Which of the following is an example of a risk reduction strategy?
According to IIA guidance, which of the following threats to objectivity is described as familiarity'?
According to NA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?
An internal audit activity uses a rotational program to recruit high-performing staff members from other parts of the organization One of these individuals is nearing the end of her four-year internal audit rotation The chief audit executive assigned her to an assurance engagement in the business area she will be going into when she leaves the internal audit activity Which of the following statements is
true regarding this scenario?
An automobile manufacturer will become one of the first in the industry to adopt a new inventory management software. Despite the system being new to the market, senior management believes that the benefits are great enough to offset the potential risks. Which of the following aspects of risk management does senior management’s decision best illustrate?
After the final audit report was issued, the engagement supervisor received an expensive gift from management recognizing her assistance in improving the business, if the gift is accepted, which of the following would be true?
Which of the following should be implemented to promote independence of the internal audit activity?
An accounts payable clerk has recently transferred Into the internal audit activity and has been assigned to an engagement related to accounts payable processes for which he was previously responsible Which of the following is the best action for the new internal auditor to take?
The management team of an agricultural organization has prioritized corporate social responsibility (CSR) initiatives. Which of the following would be considered a CSR activity?
According to IIA guidance, which of the following actions is a chief audit executive required to take with regard to reporting the results of the quality assurance and improvement program?
Which of the following is the most appropriate reason for a chief audit executive to conduct an external assessment more frequently than five years?
Which of the following represents an example of an ethical issue that the organization should address'?
Which of the following is a legitimate requirement for an internal audit activity’s quality assurance and improvement program (QAIP)?
Senior management relies on the professional judgment of an internal auditor and uses outcomes of her audit work to make business decisions Which of the following personal qualities displayed by the internal auditor is most likely the foundation for this relationship?
According to ISO 31000, which of the following statements is correct?
According to IIA guidance, which of the following is required of an internal audit activity?
Which of the following is a typical characteristic of an organization's risk management framework?
Which of the following is an example of a risk avoidance strategy?
With regard to organizational governance assurance, which of the following is an appropriate role for the internal audit activity'?
Which of the following fraud schemes is often an off-book fraud*?
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?
An internal auditor was assigned to work in the procurement department for six months to gam m-depth knowledge about the procurement process. Which of the following personnel development practices was applied in this situation?