Question 1

Which of the following is least likely to help ensure that risk is considered in a work program?

Options :

A : Risks are discussed with audit client.

B : All available information from the risk-based plan is used.

C : Client efforts to affect risk management are considered.

D : Prior risk assessments are considered.

Answer: A

Question 2

An internal auditor plans to conduct a walk-through to evaluate the control design of a process. Which of the following techniques is the auditor most likely to use?

Options :

A : Observation and inspection.

B : Inquiry and observation.

C : Inspection and reperformance.

D : Inquiry and reperformance.

Answer: B

Question 3

An internal auditor is preparing an internal control questionnaire for the procurement department as part of a preliminary survey. Which of the following would provide the best source of information for questions?

Options :

A : A relevant procurement law or regulation.

B : A list of the company-s vendors.

C : A review of a sample of tenders during the audited period.

D : A summary of the company-s expenditures and their categories.

Answer: A

Question 4

Which of the following would be most likely found in an internal audit procedures manual?

Options :

A : A summary of the strategic plan of the area under review.

B : Appropriate response options for when findings are disputed by management.

C : An explanation of the resources needed for each engagement.

D : The extent of the auditor-s authority to collect data from management.

Answer: D

Question 5

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