IIA-ACCA

An internal auditor in a small broadcasting organization was assigned to review the revenue collection process. The auditor discovered that some checks from three customers were never recorded in the organization's financial records. Which of the following documents would be the least useful for the auditor to verify the finding?A...

An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of the following statements is true regarding the extent to which the external auditor may rely on the internal...

Which of the following types of social responsibilities is voluntary and guided purely by the organization's desire to make social contributions?A . The bottom of the pyramid responsibility.B . Innovative responsibility.C . Ethical responsibility.D . Discretionary responsibility.View AnswerAnswer: C

Which of the following factors have the greatest influence on the independence of the internal audit activity?A . Quality assessments and cultural biases of the internal audit activity.B . Rotational assignments and familiarity of the internal audit activity.C . Employee incentives and self review of the internal audit activity.D ....

Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?A . Determine the organization's overall risk appetite.B . Establish a governance committee.C . Delegate authority to members of senior management.D . Identify key stakeholders and their expectations.View...

What should the internal auditor's role be in assessing the organization's ethical climate?A . Perform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate. ^Evaluate the effectiveness of the organization's strategies andB . processes for achieving the desired level of legal and...

A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?A . From sharing to reduction.B . From acceptance to reduction.C . From...

A multinational organization has asked the internal audit activity to assist in setting up the organization's risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?A . Coordinate and facilitate risk...

Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?A . An independent third party has assessed the organization's system of internal controls to be adequate and effective.B . The chief audit executive reports both functionally and administratively to the CED . The...

If appropriate safeguards exist, which of the following is considered a legitimate internal audit role within risk management at an organization?A . Imposing risk management processes.B . Providing consolidated reporting on risks.C . Taking accountability for risk management.D . Making decisions on risk responses.View AnswerAnswer: B