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According to the Standards, which of the following principles did the CAE violate?
Suspecting fraud, the chief financial officer (CFO) asked the internal audit activity to investigate a significant increase in travel related expenditures. Work was performed by a qualified internal auditor. Following the completion of the engagement, the chief audit executive (CAE) reported to the CFO that no violations were found and...
According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?
According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?A . It increases the likelihood of obtaining the audit client's agreement with the results.B . It ensures that an appropriate chain of evidence is maintained...
Which type of objectives can best be described as broad goals that promote the effective and efficient use of resources?
Which type of objectives can best be described as broad goals that promote the effective and efficient use of resources?A . Strategic objectives.B . Operational objectives.C . Reporting objectives.D . Compliance objectives.View AnswerAnswer: B
Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?
An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of the following controls would best mitigate the risk of employees receiving kickbacks...
Justified and necessary, according to the IIA Code of Ethics and Standards.
Justified and necessary, according to the IIA Code of Ethics and Standards.A . 1 onlyB . 2 onlyC . 3 onlyD . 1 and 2 onlyView AnswerAnswer: C
Perform assurance procedures with sufficient care to ensure that all risks are identified.
Perform assurance procedures with sufficient care to ensure that all risks are identified.A . 1 and 2 onlyB . 1 and 3 onlyC . 2 and 3 onlyD . 1, 2, and 3View AnswerAnswer: A
Which of the following conditions is the most likely indicator of fraud?
Which of the following conditions is the most likely indicator of fraud?A . Commissions are paid based on verified increases to sales.B . Departmental reports are consistently issued in an untimely manner.C . A manager regularly assumes subordinates' duties.D . Lower earnings occur during the industry's down cycle.View AnswerAnswer: C
Which of the following statements is true about the auditor's actions?
A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the...
Which control function will be least effective in correcting the issue?
A manufacturing organization discovers that the waste water released has failed to meet permitted limits. Which control function will be least effective in correcting the issue?A . Performing a chemical analysis of the water, prior to discharge, for components specified in the permit.B . Posting signs that tell employees which...
As a result, which IIA Code of Ethics principle is presumed to be impaired?
An internal audit activity (IAA) provided assurance services for an activity it was responsible for during the preceding year. As a result, which IIA Code of Ethics principle is presumed to be impaired?A . Competence.B . Flexibility.C . Objectivity.D . Independence.View AnswerAnswer: C
