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Which of the following would be a potential concern if the board member’s suggestion is adopted?
The board of a newly established organization was discussing the contents of the draft internal audit charter One board member suggested adding to the charter an obligation for the internal audit activity to develop controls in business procedures. The board member explained that the new organization needs professional-level developers, internal...
Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?
Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?A . ISO 26000.B . Global Reporting Initiative.C . Open Compliance and Ethics Group.D . COSO’s enterprise risk management frameworkView AnswerAnswer: B Explanation: The Global...
Which of the following best describes this risk management technique?
Management assessed the organization’s risk of expanding operations into a new, but volatile, region and began looking for a compatible local partner to manage sales and distribution. Which of the following best describes this risk management technique?A . Avoidance.B . Acceptance.C . Reduction.D . SharingView AnswerAnswer: D Explanation: The risk...
Which of the following statements best illustrates why internal auditors assess soft controls?
Which of the following statements best illustrates why internal auditors assess soft controls?A . Assessing soft controls are an effective method of assessing risk related to personnel.B . Assessing soft controls, as opposed to hard controls, makes it easier to evaluate operating effectiveness.C . Assessing soft controls can help internal...
If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?
If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?A . Evaluate the suspected activities to determine whether a forma! investigation is warranted,B . Immediately inform senior management and the board of the suspected fraud.C . Ascertain the level of resources needed...
Which of the following should a general internal auditor be able to characterize as an IT-related risk?
Which of the following should a general internal auditor be able to characterize as an IT-related risk?A . Computer servers are in a room that is accessible to all employees,B . An IT architect avoids taking vacations and sharing his workload with coworkers,C . Hours billed by IT developers exceed...
Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?
Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?A . Planning an engagement of the area in which fraud is suspected.B . Employing audit tests to detect fraud.C . Interrogating a suspected fraudsterD . Completing...
According to NA guidance, which of the following conditions would enhance the independence of the internal audit activity?
According to NA guidance, which of the following conditions would enhance the independence of the internal audit activity?A . The organizational culture rewards critical and objective thinking.B . The quality of work performed by the internal audit activity is periodically reviewed,C . The organization establishes effective governing body oversight,D ....
Who is responsible for ensuring internal auditors’ continuing professional development?
Who is responsible for ensuring internal auditors’ continuing professional development?A . Individual internal auditors.B . Chief audit executive.C . The board.D . Engagement supervisors.View AnswerAnswer: B Explanation: The Chief Audit Executive (CAE) is primarily responsible for ensuring internal auditors’ continuing professional development. The CAE plays a crucial role in setting...
Which of the following is the source of authority for the engagement supervisor to make such contact outside the organization?
An engagement supervisor obtains facilities maintenance reports from a contractor during an audit of third-party services. Which of the following is the source of authority for the engagement supervisor to make such contact outside the organization?A . The policies and procedures of the internal audit activity.B . The provisions of...
