Question 1

Which of the following best demonstrates the authority of the internal audit activity?

Options :

A : Suggesting alternatives to decision makers.

B : Improving the integrity of information.

C : Determining the scope of internal audit services.

D : Achieving engagement objectives.

Answer: C

Question 2

According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?

Options :

A : It increases the likelihood of obtaining the audit client-s agreement with the results.

B : It ensures that an appropriate chain of evidence is maintained through the workpapers.

C : It helps ensure that appropriate professional judgments and conclusions are made.

D : It is required to demonstrate that effective engagement supervision has occurred.

Answer: C

Question 3

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 4

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 5

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

Options :

A :

Appoint the CAE as a member of the board.

B : Move the CAE-s functional reporting to an executive who is not on the board.

C : Obtain full board approval of the internal audit activity-s annual audit plan.

D : Move the CAE-s functional reporting to the audit committee.

Answer: D