Question 1

Which of the following is not an appropriate role for internal auditors after a disaster occurs?

Options :

A : Monitor the effectiveness of the recovery and control of operations.

B : Correct deficiencies of the entity-s business continuity plan.

C : Recommend future improvements to the entity-s business continuity plan

D : Assist in the identification of lessons learned from the disaster and the recovery operations.

Answer: B

Question 2

A company has established its environmental audit activity as part of its legal department rather than part of its internal audit activity, which reports to the audit committee. The board has requested that the chief audit executive (CAE) provide an annual opinion on whether environmental risks are being properly addressed.

In these circumstances, the CAE should recommend to the audit committee that the internal audit activity:

Options :

A : Review the recommendations in all environmental audit reports.

B : Discuss with the environmental auditors the results of their reviews.

C : Periodically carry out a quality assessment of the environmental audit activity.

D : Include a review of environmental issues in some internal audit engagements.

Answer: C

Question 3

An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.

Upon being informed, the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.

Which course of action should the CAE follow?

Options :

A : Report the communication to the organization-s general counsel.

B : Report the instruction to the chairperson of the audit committee.

C : Inform the head of the organization that the investigation will continue as planned.

D : Inform the external auditors of the findings and the mandate to stop investigating.

Answer: B

Question 4

Topic 6 - Volume F

An internal audit team is performing an audit of workplace accident claims.

Which of the following actions by the audit team best demonstrates due professional care?

Options :

A : Having an occupational health officer on the engagement team.

B : Determining that the claims have been classified properly.

C : Placing reliance on medical reports from the injured worker-s doctor.

D : Reviewing claims to ensure all accidents actually occurred in the workplace.

Answer: A

Question 5

An internal auditor determined that the extrapolated error from a sample of transactions is greater than the tolerable error. To meet due professional care obligations, the auditor should do which of the following?

Options :

A : Select and test additional samples to identify other errors

B : Use the extrapolated error as the audited value from the testing.

C : Assess the risk that further errors may exist in the data set.

D : Base the final audit opinion on the extrapolated error.

Answer: A