Question 1

New environmental regulations require the board to certify that the organization's reported pollutant emissions data is accurate. The chief audit executive (CAE) is planning an audit to provide assurance over the organization's compliance with the environmental regulations. Which of the following groups or individuals is most important for the CAE to consult to determine the scope of the audit?

Options :

A : The audit committee of the board.

B : The environmental, health, and safety manager.

C : The organization-s external environmental lawyers.

D : The organization-s insurance department.

Answer: B

Question 2

Which of the following statements is true pertaining to interviewing a fraud suspect?

1. Information gathered can be subjective as well as objective to be useful.

2. The primary objective is to obtain a voluntary written confession.

3. The interviewer is likely to begin the interview with open-ended questions.

4. Video recordings always should be used to provide the highest quality evidence

Options :

A : 1 only

B : 4 only

C : 1 and 3

D : 2 and 4

Answer: C

Question 3

An internal auditor was assigned to review controls in the accounts payable function. Most of tie accounts payable processes are performed by a third-party service provider. The auditor included in the audit report a number of control deficiencies involving processes performed by the service provider. The service provider requested a copy of the report Which of Vie following would be the most appropriate response from the chief audit executive (CAE)?

Options :

A :

The CAE would automatically sand a copy of the report to the service provider as many of the findings relate to Via area managed by the service provider

B :

The CAE may distribute the report to tie service provider at no cost, after consulting with legal counsel and tie chief compliance officer

C :

The CAE may provide a copy of the audit report to the service provider If an agreement & signed and the service provider agrees to reimburse the cost of the audit

D :

D, The CAE should benchmark with other organization in the industry by consorting with colleagues and distribute the report only I it is an acceptable practice m the industry

Answer: B

Question 4

An internal auditor discovered that sales contracts with business clients were not stored in the electronic document management database instead they were scanned and saved in a nonsystematic manner to server folders Which of the following would be an appropriate consequence for the internal auditor to include in the documented observation?

Options :

A :

The document management policy requires business client data to be stored in a specific management database

B :

Sales contracts were stored improperly because the office manager was not trained to use the electronic database and prefers to avoid it

C :

if the organization becomes subject to litigation the agreed pricing terms and conditions of the contracts may be difficult to prove

D :

All staff should be appropriately trained and required to follow the organization-s established policies and procedures pertaining to document management

Answer: C

Question 5

According to IIA guidance, which of the following strategies would add the least value to the achievement of the internal audit activity's (IAA's) objectives?

Options :

A :

Align organizational activities to internal audit activities and measure according to the approved IAA performance measures.

B : Establish a periodic review of monitoring and reporting processes to help ensure relevant IAA reporting.

C :

Use the results of IAA engagement and advisory reporting to guide current and future internal audit activities.

D :

Establish a format and frequency for IAA reporting that is appropriate and aligns with the organization's governance structure.

Answer: A