Question 1

The chief audit executive (CAE) wants to ensure that there are sufficient resources available to fulfill the responsibilities of the internal audit activity in the coming year. Which statement describes the most logical sequence of events for the CAE to undertake in order to achieve this objective?

Options :

A : Confirm audit plan; confirm budget; review existing resources; identify outstanding resource requirements.

B : Review prior year audit plan; review existing resources; confirm new audit plan; confirm budget.

C : Confirm budget; review existing resources; obtain any new resources required; confirm new audit plan.

D : Review results of prior year audit plan; adjust current plan accordingly; hire required resources; confirm budget.

Answer: A

Question 2

Which of the following are appropriate ways to obtain continuous professional education?

1. Instructing at a local IIA training event.

2. Attending internal audit conferences and seminars.

3. Practicing specialized audit and consulting work.

4. Participating in research projects in internal auditing.

Options :

A : 1 and 3 only

B : 1 and 2 only

C : 3 and 4 only

D : 1, 2, and 4 only

Answer: D

Question 3

The director of purchasing, a certified internal auditor (CIA), signs a contract to procure a large order from a supplier whose products provide the best price, quality, and performance. A few days after signing the contract, the supplier presents the CIA with $1, 000 as a gift. Which statement regarding acceptance of the money is correct?

Options :

A : Accepting the money would be prohibited only if it were non-customary.

B : Accepting the money would violate the IIA Code of Ethics.

C : Because the CIA is not acting as an internal auditor, accepting the money would be governed only by the organization-s code of conduct.

D : Because the contract was signed before the money was offered, accepting the money would not violate the IIA Code of Ethics.

Answer: B

Question 4

According to IIA guidance, the nature and scope of assurance and consulting services to be offered must be clearly delineated in which of the following internal audit documents?

Options :

A : The internal audit policies and procedures handbook.

B : The internal audit charter.

C : The internal audit mission statement.

D : Each internal audit engagement letter.

Answer: B

Question 5

During an audit of an organization's accounts payable area, an internal auditor identified anomalies in the information examined that may indicate potential fraud. Which test should the auditor perform first to verify this?

Options :

A : Verify the completeness and integrity of the data being analyzed.

B : Identify duplicated organizational transactions.

C : Analyze all transactions within the targeted area.

D : Check control totals that have may have been falsified.

Answer: A

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