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Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?
Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?A . Appoint the chief audit executive as a member of the board.B . Adopt written policies and procedures for the internal audit activity, approved by...
Which of the following needs to be established prior to undertaking an assessment of the quality assurance and improvement program?
Which of the following needs to be established prior to undertaking an assessment of the quality assurance and improvement program?A . Department performance standards.B . Remediation timeframes.C . Nonconformance disclosures.D . External assessment resourcesView AnswerAnswer: D Explanation: Before undertaking an assessment of the quality assurance and improvement program, it is...
Which of the following organizationwide practices is most likely to be acceptable to the CAE?
A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwide practices is most likely to be acceptable to the CAE?A . Internal auditors1performance evaluation is primarily based on both client satisfaction surveys...
Which of the following statements is true regarding electronic funds transfer (EFT)?
Which of the following statements is true regarding electronic funds transfer (EFT)?A . EFT is a popular mechanism for improving efficiency, but results in less internal control.B . EFT significantly reduces the risk of fraud by eliminating the need for authorizations.C . EFT eliminates payment delays due mostly to the...
Which of the following would be considered a monitoring activity in organization wide risk management?
Which of the following would be considered a monitoring activity in organization wide risk management?A . Validate the results of management's self-assessment.B . Perform reviews of personnel.C . Maintain rigorous and comprehensive documentation.D . Obtain authorizations and signatures.View AnswerAnswer: A Explanation: A monitoring activity in organization-wide risk management would include...
Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization?
Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization?A . Review the organization's ethical value structure and reporting procedures.B . Review what the organization considers to be ethical behavior, such as the employee code of conduct.C ....
The auditor's concern best describes which of the following risks?
An internal auditor is performing testing to gather evidence regarding an organization’s inventory account balance and is mindful of the possibility that the sample used might support the conclusion that the recorded account balance is not materially misstated when, in fact, it is. The auditor's concern best describes which of...
Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?
Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?A . The auditor intentionally omitted from his resume that he was fired from his previous job for fraud allegations,B . The auditor decided not to notify her supervisor...
Identify and mitigate risks to help meet the CSR program objectives.
Identify and mitigate risks to help meet the CSR program objectives.A . 1,2, and 3,B . 1 2, and 4.C . 1, 3, and 4.D . 2, 3, and 4.View AnswerAnswer: B Explanation: According to IIA guidance, the internal audit activity can consult on CSR program design and implementation, serve...
Which of the following justifies inclusion of this clause in the reports?
An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments. The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International! Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies...
