Which of the following is an example of risk monitoring to ensure a system is performing as intended?
A new chief audit executive realized that the internal audit charter has not been updated in five years and only includes the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, and the Standards. What mandatory component is missing?
An internal audit of warehouse inventory revealed no material deficiencies. However, management later discovered fraud, which occurred during the period that was audited, and determined that a major control deficiency allowed the fraud to occur. Given management's discovery, which of the following statements is valid?
Which of the following statements is true regarding how the scope of a consulting engagement should be established?
Which of the following describes a primary responsibility for the internal audit activity in helping management maintain effective controls?
The results of an assessment of the adequacy of controls would be considered incomplete or misleading unless the internal auditor considers which of the following?
The chief audit executive (CAE) has hired a new internal auditor who was immediately assigned to a procurement function audit. Because the new auditor's name is similar to that of the procurement manager, some staff members think the two are related, although they are not. Which of the following actions is most appropriate for the CAE to take?
According to IIA guidance, which of the following is accurate regarding the chief audit executive's (CAE's) requirement to report the results of quality assessments?
1. The CAE must report the results of external assessments at least annually.
2. The CAE must report the results of ongoing monitoring at least annually.
3. The CAE must report the results of quality assessments to senior management.
4. The CAE must report the results of quality assessments to the board.
Nearing the completion of fieldwork, an internal auditor shared the draft report findings with management prior to the closing meeting. During the closing meeting, management expressed dissatisfaction in that they were not familiar with some of the findings. Management also noted that some aspects of the report seemed confusing. Which of the following competencies appears to have been lacking in this scenario?
According to HA guidance, which of the following is true regarding independence and objectivity for small internal audit activities?
An internal auditor is reviewing the results of an employee survey at a mining company. Which of the following would alert the auditor to a potential ethics issue?
The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again. What concerns should be considered prior to assigning the audit to the same auditor?
Which of the following is most likely to impair the internal audit activity's independence?
An internal auditor believes that the internal audit activity's independence is impaired. Which of the following actions should the internal auditor take first?
Which of the following scenarios violates The IIA's standard regarding internal audit independence?
According to IIA guidance, which of the following activities would typically be examined when using the maturity model approach for assessing an organization's risk management program?
An organization is conducting a fraud risk assessment as part ol its risk management program. Which of the following steps is the organization most likely to perform first?
An internal auditor is finalizing an audit report on the effectiveness of the organization's overall system of internal control. Several audit tests were performed, and the only issue identified was that the CEO frequently asks employees to make exceptions or bypass the organization's standard written policies and procedures. Which of the following conclusions is most appropriate for the auditor to report?
Wi ch of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?
A chief audit executive (CAE) was asked by senior management to establish and manage a risk management function. A new chief risk officer was hired a year later to assume these responsibilities. As this function was included in the current annual audit plan, the CAE engaged an external resource for a risk management engagement. Which of the following potential threats to objectivity was the CAE likely addressing?
According to IIA guidance, which of the following best demonstrates due professional care?
The chief audit executive (CAE) decided to conduct a self-assessment with independent validation. Which of the following is the most likely reason the CAE selected this course of action?
Which of the following is a primary benefit of implementing a governance risk management and compliance framework within an organization?
Which of the following frauds is most likely to occur in the accounts payable function?
Regarding Ihe chief audit executive (CAE). which ot the following is considered an impairment to the independence of the internal audit activity?
Which of the following is an indicator that the internal audit activity does not fully conform with the Standards?
According to IIA guidance, which of the following actions by the chief audit executive (CAE) best demonstrates the organizational independence of the internal audit activity?
An internal auditor assessed the controls within his organization's payroll process and suspects that erroneous payments may have been made to a fraudulent bank account. What is the best course of action for the auditor to take?
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?