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Which of the following would best help the organization manage the risk of fraud?
An organization allows the same individuals to physical access inventory and purchase new assets when supplies are depleted. Which of the following would best help the organization manage the risk of fraud?A . Accounting personnel should regularly perform reconciliation between invoices and purchase ordersB . Accounting personnel should conduct a...
Which of the following practices is generally most effective to protect internal audit objectivity?
Which of the following practices is generally most effective to protect internal audit objectivity?A . Ensuring regular documentation of auditor skills and experience in the workpapers.B . Basing performance evaluations heavily on customer satisfaction surveys.C . Prohibiting auditors from accepting gifts from audit clients or potential clients.D . Ensuring that...
Which of the following best demonstrates internal auditors performing their work with proficiency?
Which of the following best demonstrates internal auditors performing their work with proficiency?A . Internal auditors meet with operational management at each phase of the audit process.B . Internal auditors adhere to The IIA’s Code of Ethics.C . Internal auditors work collaboratively with their engagement team.D . Internal auditors complete...
Which of the following competencies is the engagement supervisor demonstrating?
Prior to commencing a financial compliance engagement, the engagement supervisor reads the business plan for the finance department and meets informally with the director to learn more about any key issues. Which of the following competencies is the engagement supervisor demonstrating?A . The ability to inspire trustB . The ability...
Which of the following statements best represents the duo professional care that is required of internal auditor’s?
Which of the following statements best represents the duo professional care that is required of internal auditor’s?A . Internal auditors should perform assurance procedures to ensure that all significant risks are identified.B . Internal auditor should not perform consulting engagements for operations for which they had previous responsibilities.C . Internal...
With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?
With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?A . Obtaining assurance on external financial, regulatory, and internal audits.B . Complying with laws, regulations, and codes.C . Assigning authority and responsibilities organization wide.D . Monitoring and measuring performance.View AnswerAnswer: A
Which of the following would be the most effective preventative control to reduce these losses?
During an audit engagement of a large retail store, internal auditors noted significant discrepancies between available inventory and sales and suspect an abuse of cash register refunds and voids. Which of the following would be the most effective preventative control to reduce these losses?A . Ensure that returned merchandise is...
Which of the following items related to the quality assurance and improvement program should the chief audit executive report to the board?
Which of the following items related to the quality assurance and improvement program should the chief audit executive report to the board?A . Ongoing monitoring resultsB . Periodic management assessment resultsC . Annual risk assessment resultsD . Internal auditors' training evaluation resultsView AnswerAnswer: C
According to HA guidance, which of the following is true regarding independence and objectivity for small internal audit activities?
According to HA guidance, which of the following is true regarding independence and objectivity for small internal audit activities?A . The chief audit executive (CAE) may consider including a disclaimer on independence in audit reports.B . The CAE may consider greater involvement of those with suitable knowledge of audit practice.C...
What type of controls would the auditor likely recommend to management to specifically address this problem?
The internal auditor of a small manufacturer noted that the accounting department has insufficient staff to achieve proper segregation of duties. What type of controls would the auditor likely recommend to management to specifically address this problem?A . Entity-level.B . Preventive.C . Directive.D . Compensating.View AnswerAnswer: D
