Question 1

Which of the following is the next step in understanding a business process once an internal auditor has identified the process?

Options :

A : Determine process outputs.

B : Determine process inputs.

C : Determine process activities.

D : Determine process goals.

Answer: D

Question 2

An examination of the accounts payable function evidenced multiple findings with respect to segregation of duties. After management's response and action plan are received and documented in the final report, which of the following is most appropriate?

Options :

A : Follow up after the applicable changes have been incorporated to validate management’s response.

B : Include the items in the scope of the next scheduled audit of the accounts payable function.

C : Because management agreed with the findings, no further action is deemed necessary.

D : Have an internal audit staff member placed into the accounting department until corrections are made.

Answer: A

Question 3

A chief audit executive's report to the board showed a significant trend of recent aud4s going over planned budgeted hours. Which of the following factors could cause this trend?

Options :

A : Poor engagement supervision

B : ineffective board reporting

C : Untimely observation follows up and closure

D : Limited staff resources

Answer: A

Question 4

Which of the following best describes external benchmarking using trend analysis for a subsidiary of an international company?

Options :

A :

Comparing the current ratio of the subsidiary with the current ratio of another company for the same period

B :

Comparing common-size financial statements of the subsidiary with the averages of the industry for the last two periods

C : Comparing the sales of the subsidiary with the sales of another subsidiary for the last two periods.

D : Comparing the sales of the subsidiary with the budgeted figures for the last two periods

Answer: B

Question 5

Which of the following actions are appropriate for the chief audit executive to perform when identifying audit

resource requirements?

1. Consider employees from other operational areas as audit resources, to provide additional audit coverage in

the organization.

2. Approach an external service provider to conduct internal audits on certain areas of the organization, due to

a lack of skills in the organization.

3. Suggest to the audit committee that an audit of technology be deferred until staff can be trained, due to

limited IT audit skills among the audit staff.

4. Communicate to senior management a summary report on the status and adequacy of audit resources.

Options :

A : 1 and 3 only

B : 2 and 4 only

C : 1, 2, and 4

D : 2, 3, and 4

Answer: B