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Question 1 Selectable Answer

Which of the following is the best way for an internal auditor to demonstrate due professional care?

A. Conduct an audit to the same extent that another prudent auditor would under similar circumstances
B. Seek feedback from the engagement supervisor during the engagement
C. Execute internal audit work in such a manner as to provide absolute assurance of compliance
D. Request and receive client feedback surveys during the engagement

Answer:

Question 2 Selectable Answer

Which of the following should be part of the internal audit activity's duties?

A. Actively reporting to the governing body.
B. Providing risk management frameworks.
C. Assisting management in developing processes and controls to manage risks and issues.
D. Identifying and mitigating significant risks to the organization.

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Question 3 Selectable Answer

Which of the following actions best demonstrates an internal auditor exercising due professional care?

A. Testing an entire population, even when a sample would suffice
B. Using technology and data analysis techniques for efficiency
C. Enhancing knowledge, skills, and other competencies through professional development
D. Establishing audit objectives, performing audit tests, and implementing missing controls

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Question 4 Selectable Answer

Which of the following indicates that internal audit independence may be compromised?

A. The internal auditor maintains a close personal relationship with operational management.
B. Material observations were intentionally left out of the audit report.
C. Internal auditors assigned to the audit engagement did not have the knowledge, skills, and competencies needed to perform their responsibilities.
D. An internal auditor failed to apply professional skepticism while performing audit tests in an area overseen by an experienced, reputable manager

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Question 5 Selectable Answer

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?

A. Business acumen.
B. Critical thinking.
C. Communication.
D. Audit report writing.

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Question 6 Selectable Answer

Which of the following is a legitimate role for the internal audit activity in the organization's risk management process'?

A. Championing the establishment of a risk management framework
B. Creating and implementing new risk management processes
C. Maintaining sole responsibility for risk management within the organization
D. Setting the risk appetite of the organization

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Question 7 Selectable Answer

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?

A. Industry knowledge
B. Project management
C. Leadership skills
D. Risk assessments

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Question 8 Selectable Answer

According to IIA guidance, which of the following best demonstrates how the chief audit executive may ensure that due professional care is applied?

A. Establish policies and procedures concerning the engagement process
B. Develop a strategy for recruiting assigning, and training staff
C. Outsource complex engagements to an external service provider
D. Base the auditor evaluation process on the number of observations

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Question 9 Selectable Answer

Which of the following documents would promote objectivity within an organization's internal audit activity?

A. Internal audit charter.
B. Internal audit manual.
C. Audit committee charter
D. Human resources employee handbook.

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Question 10 Selectable Answer

According to the Standards, which of the following demonstrates the proficiency of an internal auditor?

A. Each internal auditor must hold one or more certifications in the area of fraud and seek out continuing professional development related to fraud detection and fraud investigation.
B. Each internal auditor must have sufficient knowledge of IT risks and controls, and be able to evaluate the risk of fraud and the manner in which it is managed by the organization.
C. Each internal auditor on the engagement team must possess the same level of knowledge, skills, and other competencies as other auditors on the engagement team.
D. Each internal auditor must be paired, by the chief audit executive, with an individual who possesses the knowledge, skills, or other competencies required to complete the audit.

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Question 11 Selectable Answer

Wi ch of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?

A. The monthly payroll reports are not vetted to ensure terminated employees have been removed from the payroll system
B. The volume of nonroutine journal entries has steadily increased over time.
C. The database of approved suppliers has not been reviewed the last year
D. The recent employee survey indicates that some employees remain unaware of the organization’s whistieblower hotline.

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Question 12 Selectable Answer

Which of the following situations undermines the independence of the internal audit activity?

A. The internal audit activity is responsible for the company's risk management function and its head manager reports to the chief audit executive
B. A senior member of the internal audit activity once worked in the corporate finance department
C. The organization's CEO reviews the internal audit activity's annual budget per the organization’s policies and procedures
D. The internal audit activity often uses management's risk profile to build its own risk profile for annual planning

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Question 13 Selectable Answer

During an audit engagement of a large retail store, internal auditors noted significant discrepancies between available inventory and sales and suspect an abuse of cash register refunds and voids.
Which of the following would be the most effective preventative control to reduce these losses?

A. Ensure that returned merchandise is restocked to shelves or sent to the manufacturer by an independent employee.
B. Call a sample of customers who returned merchandise to test the legitimacy of the returns and check refund amounts.
C. Require that a manager use a reserved register code to approve voids or refunds.
D. Analyze voids and refunds by employee, credit card number, and amount for unusual numbers, amounts, or patterns.

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Question 14 Selectable Answer

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?

A. The result of a quality assurance and improvement program confirm there are no material issues.
B. Engagement workpapers are retained by the internet audit activity according to the retention and deletion policy.
C. The internal audit activity receives positive feedback from the managers of the areas that were under review.
D. internal auditors demonstrate proficiency by maintaining professional internal audit certifications

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Question 15 Selectable Answer

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?

A. Integrity
B. Negotiation skills.
C. Business acumen
D. Flexibility

Answer:

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