In order to provide the most useful information for an organization's risk management decisions,which of the following should be assessed?
Answer : C
In publicly held companies,management often requires the internal audit activity's involvement with quarterly financial statements that are made public and used internally.
Which of the following is generally not a reason for such involvement?
Answer : C
According to the Standards,the organizational status of the internal audit activity:
Answer : A
Which of the following measurements could an auditor use in an audit of the efficiency of a motor vehicle inspection facility?
Answer : C
The chief audit executive should periodically report the internal audit activity's purpose,authority,responsibility,and performance,as well as significant risk exposures and control issues,to which of the following?
I. Board of directors.
II.Senior management.
III.Shareholders.
IV.External auditors.
Answer : B
Which of the following steps would not be included in a program of selecting and developing human resources for an internal audit department?
Answer : B
Which of the following best describes the underlying premise of the COSO enterprise risk management framework?
Answer : B
Which of the following is a role of the board of directors in the governance process?
Answer : B
Which of the following should be incorporated in a risk management policy?
I.Boundaries and limit structures.
II.Requirements for reporting risk.
III.Risk authorities.
Answer : D
Which of the following actions would be considered a violation of the Standards?
I.Drafts of engagement communications were reviewed with the audit client to obtain input.
The client's comments were considered when developing the engagement final communication.
II.An auditor participated as part of a development team to review the control procedures to be incorporated into a major computer application under development.
III.Given limited resources,the chief audit executive performed a risk analysis to determine which functions to audit.
Answer : D
A charitable organization provides substantial grants for important medical research.
Assuming marginal controls are in place,which of the following possible frauds or misuses of organization assets should be considered the area of greatest risk?
Answer : C
Which of the following is not an appropriate type of coordination between the internal audit activity and regulatory auditors?
Answer : B
An organization that outsources much of its internal audit work to an external service provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards?
Answer : A
In order to exercise due professional care as defined in the International Professional
Practices Framework,an internal auditorshould:
I.Consider the probability of significant noncompliance in each audit engagement.
II.Perform assurance procedures with sufficient care to ensure that all risks are identified.
III.Weigh the cost of assurance against the benefits.
Answer : B
A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an auditor look for as an indicator of employee theft of food from a specific store?
Answer : B