Essentials of Internal Auditing
Last Update May 18, 2024
Total Questions : 227
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The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again. What concerns should be considered prior to assigning the audit to the same auditor?
Which of the following best demonstrates organizational independence of the internal audit activity?
Which of the following is true regarding internal audit role's in The IIA's Three Lines Model?
Which of the following principles of The IIA's Code of Ethics implies that internal auditors should refrain from performing assurance services when there is an impairment to audit independence that has not been declared?
Which of the following best illustrates the principle of due professional care?
With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?
When an organization purchases a derivative contract in the stock market to limit the potential loss in the value of a security, the organization is applying which of the following risk management techniques?
When the chief audit executive Is responsible for risk management in an organization, which of the following parties is responsible for overseeing the internal audit activity's assurance over risk management?
Due to unfavorable economic conditions management decided to postpone new investments for the next year. Which of the following best describes the risk management strategy used to address this situation?
Which of the following is an indicator of ineffective third-party risk management?
An internal auditor failed to identify transactions between the parent organization and a subsidiary. What is the most likely reason for the failure?
An internal auditor believes that the internal audit activity's independence is impaired. Which of the following actions should the internal auditor take first?
Which of the following best demonstrates internal auditors performing their work with proficiency?
An internal auditor assessed that the risk of steel theft at a plant is high. In response, the plant's management introduced a number of controls, including fences around the facility, a metal detector at the entrance, and monthly steel inventory counts. If the controls operate as intended, which of the following outcomes would the internal auditor hope to see?
According to HA guidance, if an internal auditor suspects fraud during an assurance engagement, what should the auditor do first?
During a monthly internal audit staff meeting, the chief audit executive (CAE) decided to reinforce the importance of internal audit staff being objective in their work. Which of the following examples would be most appropriate for the CAE to include as part of the meeting presentation?
Which of the following can be used to minimize employees’ resentment of controls?
Senior management asks the chief audit executive to review the organization's compliance with recently introduced legislation on international transfer pricing. The review requires an internal auditor who thoroughly understands the legislation and pricing methods. The internal audit activity does not have an auditor with those skills. Which of the following is the most appropriate course of action?
Which of the following organizational practices is likely to be a part of a corporate social responsibility program?
The chief audit executive (CAE) is drafting the annual internal audit plan and seeks input from senior management and the external auditor prior to submitting it for approval to the board. According to MA guidance, which of the following statements is true regarding this scenario?
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?
Which of the following situations is most likely to threaten the independence of the internal audit activity?
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?
Who has the ultimate responsibility of implementing the organization’s governance system?
Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?
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?
Which of the following statements is the most appropriate example of the internal audit activity exercising due professional care during an audit of the payroll department?
An existing Internal audit charter is currently under review for revision. Who is responsible for assuring that all required components are included?
What is the main difference between a consulting engagement versus an assurance engagement?
A multinational organization has asked the internal audit activity to assist in setting up the organization’s risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?
A subsidiary of the organization was preparing for an initial public offering (IPO). Af the request of the audit committee, the chief audit executive (CAE) and all senior audit staff were actively involved in the process by helping collect and validate financial data, conducting assessments, and participating in meetings with IPO advisors. Six months later, it became obvious that the IPO had to be canceled. Newly appointed audit committee members requested an assurance engagement that v/ould assess the IPO preparation process. Which of the following would be the best course of action for the chief audit executive (CAE) to take?
Regarding Ihe chief audit executive (CAE). which ot the following is considered an impairment to the independence of the internal audit activity?
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?
TESTED 18 May 2024
