Question 1

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 2

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 3

While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?

Options :

A : Proceed with the audit engagement, but do not include the relative-s information.

B : Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

C : Disclose in the engagement final communication that the relative is a customer.

D : Immediately withdraw from the audit engagement.

Answer: D

Question 4

According to IIA guidance, which of the following best describes processes and tools typically used in ongoing internal assessments?

Options :

A : Benchmarking of the internal audit activity-s practices and performance.

B : Report of internal assessment results, response plans, and outcomes.

C : Analysis of performance metrics such as cycle times.

D : Self-assessments and surveys of stakeholder groups.

Answer: C

Question 5

Which of the following is an example of collusion?

Options :

A : An employee includes a faked receipt in his expense claim, and the claim is signed by the employee-s manager.

B : A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.

C : A vendor sends a duplicate invoice with a new invoice number, and the accounts payable system fails to detect the duplication.

D : An employee works with the IT manager to develop a program for identifying duplicate invoice payments.

Answer: B