IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 59
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Which of the following situations would cause the greatest concern regarding impairment of internal audit objectivity?
Which of the following scenarios would most likely impair the independence of an internal audit activity?
Which combination of strategies would provide the best evaluation of the effectiveness of the organization's risk assessment activity?
1. Interview staff at various levels to discuss the organization's objectives, significant risks, and risk appetite.
2. Review board meeting minutes to determine whether the significant risks identified are communicated timely to the board.
3. Evaluate the adequacy and timeliness of management remediation actions by reviewing the control design, testing the controls, and reviewing monitoring procedures.
4. Review the professional development plans of internal audit staff to ensure all are competent to assess the organization's risk assessment activity.
1 and 2 only.
1.2, and 3 only.
1.3. and 4 only.
3 and 4 only.
An internal auditor assessed the controls within his organization's payroll process and suspects that erroneous payments may have been made to a fraudulent bank account. What is the best course of action for the auditor to take?
Speak to the payroll manager so he may investigate the auditor's observations.
Continue to investigate the payments to confirm the accuracy of the observations, and determine whether further fraudulent payments have been made.
Stop the audit and report the findings to senior management immediately.
Escalate the concern to the engagement supervisor.
A chief audit executive (CAE) has been asked by the board to evaluate the effectiveness of ethical programs created by management. Which of the following would be the most appropriate action for the CAE to take?
Compare the design of the organization's ethical programs with best practices.
Verify that a code of conduct and related policies exist and are communicated.
Use employee surveys to assess whether ethical programs are achieving desired outcomes.
Compare the cost of the ethical programs with the achieved outcomes.
To meet the resource requirements of this year's internal audit plan, the chief audit executive (CAE) has recruited additional staff auditors, including an employee who resigned as a senior supervisor from the accounts payable department two months ago. There is a scheduled accounts payable review that the CAE wants to start within the next five months. Which approach should the CAE take, knowing the expertise of his new recruit in the area intended to be audited?
Have the new internal auditor's previous boss be excused from the area during fieldwork.
Have the new internal auditor be responsible for the planning of the audit as well as the review of the audit fieldwork.
Have the new internal auditor assigned to other responsibilities and not work on the accounts payable audit engagement.
Have the new internal auditor assist with conducting the fieldwork, but ensure that her work is reviewed by the CAE.
Nine months ago, an employee who was responsible for collections in the accounts receivables department joined the internal audit team. There is an accounts receivables assurance audit scheduled as part of this year's approved audit plan, which will include a review of the collections unit. With the knowledge and experience of this individual in the area, which of the following is the best approach for the chief audit executive (CAE) to take?
Have the auditor formerly with the collections unit assist with planning and documenting the audit field work.
Have the auditor formerly with the collections unit not participate on the audit team.
Have the auditor formerly with the collections unit conduct the fieldwork and ensure it is reviewed by the CAE.
Have the auditor formerly with the collections unit review all fieldwork done to ensure that there was adequate coverage.
A new internal auditor was recently recruited to the internal audit activity from the organization's finance department. What is likely to be the chief audit executive's greatest concern regarding assigning the new auditor to upcoming audits in the finance department?
The time it may take the new auditor to complete the assignment and report the findings to management.
The qualifications of the new auditor and whether the auditor's business knowledge is relevant to the assignment.
The potential for a conflict of interest to exist or appear to exist if the new auditor undertakes these assignments.
The knowledge the new auditor may have of control weaknesses in the finance department.
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?
Poor performance by individual operational managers in the areas audited.
Unrealistic expectations by the internal audit activity on the quality of risk management and control.
A lack of an effective organizational framework for risk management and control.
A failure by the internal audit activity to identify and manage the organization's risks.
Which of the following is an appropriate role for the internal audit activity?
Ensuring the organization's key risks are managed through appropriate controls.
Assisting the organization in maintaining effective controls.
Implementing new controls to promote continuous improvement.
Validating control assessments performed by the external auditor.
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