IIA IIA-CIA-Part2 Practice Test - Questions Answers, Page 45

Which of the following should the chief audit executive do when evaluating the possibility of relying on external auditors' work?

An internal auditor discovered that equipment used to monitor air quality was not maintained according to the established maintenance schedule. If the issue is not addressed, the equipment may not provide accurate information on pollutant levels, which could result in regulatory sanctions and reputational damage. The auditor discussed the issue with both the manager in charge and the CEO, who explained that they understand the risk, but it has become too expensive to maintain the equipment as scheduled. In this situation, what should the chief audit executive do?

Which of the following statistical sampling approaches is the most appropriate for testing a population for fraud?

The chief audit executive (CAE) is developing a workpaper preparation policy for a new internal audit activity. The CAE wants to ensure that all workpapers relate directly to the engagement objectives. Which of the following statements should be included in the policy specifically to address this concern?

Following an audit, management developed an action plan to improve controls over the handling of scrap metal. Which of the following would be the most appropriate course of action for the auditor to follow up?

What is the primary reason that audit supervision includes approval of the engagement report?

What information would be most useful to an internal auditor who is attempting to identify specific processes to include in the scope of an assurance engagement?

Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the organization's ability to continue business. How would the chief audit executive respond?

According to IIA guidance, which of the following is a limitation of a heat map?