Question 1

Which of the following activities undertaken by the internal auditor might be in conflict with the standard of independence?

Options :

A : Product development team leader.

B : Ethics advocate.

C : External audit liaison.

D : Risk management consultant.

Answer: A

Question 2

Maintaining individual objectivity is most dependent on

Options :

A : Clearly informing auditee departments and functions of The IIA definition of conflict of interest.

B : An annual evaluation by the board.

C : Internal auditors avoiding conflicts of interest.

D : An annual evaluation by an external assessment team.

Answer: C

Question 3

During the course of an engagement, an internal auditor discovers that a clerk is embezzling funds from the organization. Although this is the first embezzlement ever encountered and the organization has a security department, the internal auditor decides to interrogate the suspect. If the internal auditor is violating The IIA’s Code of Ethics, the rule violated is most likely

Options :

A : Failing to exercise due diligence.

B : Lack of competence in this area.

C : Failing to comply with the law.

D : Lack of loyalty to the organization.

Answer: B

Question 4

Internal audit management should annually perform which of the following?

Options :

A : Skill gap assessment

B : Education gap assessment

C : Talent gap assessment

D : Competency gap assessment

Answer: D

Question 5

What are the policies, procedures, and activities that are part of a control framework, designed to ensure that risks are contained within the established risk tolerances?

Options :

A : Governance process.

B : Risk management process.

C : Control processes.

D : Internal audit activities.

Answer: C