IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 74
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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?
Suggest to the payroll manager that the suspicious documents should be sent to the organization's security department for forensic review.
Keep the suspicious documents in the workpaper file until the end of the engagement, and then discuss the suspicions with the payroll manager.
Discuss the suspicious documents with payroll staff to seek their views on the authenticity of the signatures.
Review the suspicious documents with the chief audit executive and seek advice concerning further examination.
Which of the following must be considered by the chief audit executive before writing the internal audit charter?
Internal auditors' level of competencies and skills.
The manner in which the internal audit activity is viewed by the board.
Evaluation of staff certifications and continued development.
Effectiveness of the quality assurance and improvement program.
Which of the following activities would breach the principles of The IIA's Code of Ethics?
The internal auditor is keeping personal notes from an engagement conducted on the organization's information system security for future use.
The internal auditor is performing an engagement of the purchasing department where he used to work five years ago.
The internal auditor is using information from a recent engagement to assist with a friend's business.
The internal auditor is discussing relevant information involving questionable vendors with a government regulatory agency.
Which of the following documents most directly describes the guidelines for and importance of the objectivity of internal auditors?
Internal audit quality assessments.
Internal audit charter.
Internal audit plan.
Internal audit reporting.
Which of the following statements is true regarding organizational independence of the internal audit activity (IAA)?
Reporting to a higher level within the organization reduces the potential scope of engagements that can be undertaken by the IAA.
The benefit of the IAA's organizational independence is realized primarily via reduced costs for the external auditor.
Independence is impaired when the scope of the IAA is subject to changes required by senior management.
Inadequate organizational independence can result in the chief audit executive being able to fire staff without consulting the audit committee.
Which of the following would best preserve the organizational independence of the internal audit activity?
The internal audit charter is approved by the chief audit executive (CAE).
The CAE reports functionally to the CEO.
The CAE's internal audit plan is endorsed by the board.
The chief financial officer determines the appointment of the CAE.
Which level of corporate social responsibility does whistleblowing in companies primarily support?
Ethical responsibility.
Economic responsibility.
Legal responsibility.
Discretionary responsibility.
A sales manager was recently bypassed for a promotion. He feels entitled to a higher salary and is angry that management does not recognize his contributions. To make up for this perceived injustice, he begins to record false expenses on his travel expense reports. This scenario best illustrates which of the following fraud risk factors?
Incentive.
Rationalization.
Pressure.
Opportunity.
For a high-risk observation, which is the best approach to follow when management takes an aggressive, uncompromising position in opposition to the internal audit activity?
The parties should work together to develop a mutually beneficial solution.
The internal audit activity should share the observation with other business units to get their opinions.
The internal audit activity should discuss with senior management, and if still not resolved, discuss with the board.
The internal audit activity should accommodate management's position, since the relationship is more important than the fight.
Which of the following best describes a consulting engagement rather than an assurance engagement?
Bank internal auditors review an activity checklist to determine that the loan officer followed proper procedures.
The chief financial officer asks for the internal auditor's opinion regarding whether the new accounting pronouncements were properly and comprehensively adopted.
An internal auditor is assigned to assess whether a proposed new initiative to convert a customer service system would be cost-effective.
Senior management asks the internal audit activity to review compliance with customer data security regulations.
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