Question 1

Non-statistical sampling does not require which of the following?

Options :

A : The sample to be representative of the population.

B : The sample to be selected haphazardly.

C : A smaller sample size than if selected using statistical sampling.

D : Projecting the results to the population.

Answer: C

Question 2

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 3

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 4

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 5

An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of the following statements is true regarding the extent to which the external auditor may rely on the internal audit activity's work?

Options :

A : The external auditor may make full use of the work, as the audit charter is very specific as to the work the internal audit activity may undertake.

B : The external auditor may use the work, as the board has approved the charter, thus taking responsibility for any deficiencies.

C : The external auditor must disregard the work, as the scope of the charter may introduce bias and result in a lack of due professional care.

D : The external auditor may use the work with caution, due to the internal audit activity-s scope and responsibility restrictions.

Answer: D