Question 1

According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

Options :

A : To enable Triple Bottom Line reporting capability.

B : To facilitate the conduct of risk assessment.

C : To achieve and maintain sustainable development.

D : To fulfill regulatory and compliance requirements.

Answer: C

Question 2

According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?

Options :

A : Rating each engagement record to assess its relevance and accessibility for the organization-s board.

B : Controlling access to engagement records, including access by senior management.

C : Developing retention requirements for engagement records that are consistent with organizational guidelines.

D : Forming policies governing the custody and retention of consulting engagement records before their release to other parties.

Answer: A

Question 3

Which of the following conditions is the most likely indicator of fraud?

Options :

A : Commissions are paid based on verified increases to sales.

B : Departmental reports are consistently issued in an untimely manner.

C : A manager regularly assumes subordinates' duties.

D : Lower earnings occur during the industry-s down cycle.

Answer: C

Question 4

Which of the following activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?

Options :

A : The internal auditor reviews the physical access to merchandise during an inventory count.

B : The audit manager conducts an internal quality assessment of the internal audit activity-s adherence to the Standards.

C : The audit manager refrains from assigning an auditor who was a former payroll clerk to conduct a payroll audit.

D : The board approves the annual performance evaluation of the chief audit executive.

Answer: A

Question 5

Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.

Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?

1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.

2. Experience of the engineer in the type of work being considered.

3. Compensation or other incentives that the engineer may receive.

4. The extent of other ongoing services that the engineer may be performing for the organization.

Options :

A : 1 and 4 only

B : 2 and 3 only

C : 3 and 4 only

D : 1, 2, and 4 only

Answer: D