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NEW QUESTION 25
According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?
1. Identification.
2. Mitigation.
3. Remediation.
4. Reduction.
- A. 1 and 4 only.
- B. 1, 3, and 4 only.
- C. 1 only. |
- D. 1,2, 3, and 4.
Answer: A
NEW QUESTION 26
When developing the organization's first risk universe, which of the following would the chief audit executive be least likely to consider?
- A. The boundaries established to manage the amount of risk taken.
- B. The extent and degree of interdependency for identified key risks.
- C. The amount of risk that an organization is willing to seek or accept.
- D. The exposure to risks following management's risk responses.
Answer: D
NEW QUESTION 27
According to IIA guidance, which of the following should be formally documented in the internal audit charter?
- A. The nature of consulting services provided by the internal audit activity.
- B. The internal audit activity's responsibility for imposing risk management processes.
- C. The budgeting process for the internal audit activity.
- D. The internal audit activity's responsibility for the organization's governance framework.
Answer: A
NEW QUESTION 28
According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising due professional care?
When auditing investments, the auditor identified instruments with which he was unfamiliar.
- A. An auditor was reviewing inventory counts conducted by the warehouse staff. One truck containing an immaterial amount of inventory was off-site and wasn't verified by the auditor.
- B. He decided not to select that type of investment in his sample, as he did not have the knowledge needed to perform a proper assessment.
- C. An auditor visited a plant that produces a significant portion of the organization's inventory. The day he arrived, the plant manager was out sick, so the auditor issued the report without interviewing the manager.
- D. An auditor in charge needed to have testing completed by the end of the month, but was behind schedule. He identified a junior auditor to conduct the work for him on a complex area of the organization.
Answer: B
NEW QUESTION 29
According to The IIA's Code of Ethics, which of the following actions violates the principle of confidentiality?
- A. Providing personal tax preparation services for a fee for several employees during the lunch hour.
- B. Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.
- C. Agreeing to reword an observation to avoid the client complaining directly to the auditor's supervisor.
- D. Accepting a consulting request in the IT department without possessing the requisite experience.
Answer: B
NEW QUESTION 30
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