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The chief audit executive (CAE) of a new internal audit activity is creating an internal audit charter According to IIA guidance, which of the following terms is most likely to be included in the charter?
The chief audit executive (CAE) of a new internal audit activity is creating an internal audit charter According to IIA guidance, which of the following terms is most likely to be included in the charter?A . Senior management will be present whenever the CAE interacts with the board, to ensure...
Which of the following could increase risks to the organization’s control environment?
Which of the following could increase risks to the organization’s control environment?A . Strong board of directors oversight.B . Incentive-based compensation structures.C . Lower than average employee turnover.D . Implementation of a fraud hotline.View AnswerAnswer: B Explanation: Incentive-based compensation structures can increase risks to the organization’s control environment by potentially...
In an assurance engagement focused on the adequacy of organization wide risk management practices, which of the following best describes a primary area of interest for the engagement?
In an assurance engagement focused on the adequacy of organization wide risk management practices, which of the following best describes a primary area of interest for the engagement?A . The effectiveness of process-level and transaction-level controls.B . Conflicts of interest within the organizational structure of the senior management.C . The...
Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?
Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?A . ISO 26000.B . Global Reporting Initiative.C . Open Compliance and Ethics Group.D . COSO’s enterprise risk management frameworkView AnswerAnswer: B Explanation: The Global...
Which of the following most accurately describes the role of the board when it comes to organizational governance?
Which of the following most accurately describes the role of the board when it comes to organizational governance?A . Responsibility for outcome of the process.B . Responsibility to be involved in management of the organization.C . Responsibility to determine who is accountable for outcomes.D . Responsibility to identify risks in...
This activity is designed to prevent which of the following conditions?
Operational management in the IT department has developed key performance indicator reports, which are reviewed in detail during monthly staff meetings. This activity is designed to prevent which of the following conditions?A . Knowledge/skills gap,B . Monitoring gap.C . Accountability/reward failure,D . Communication failure.View AnswerAnswer: D Explanation: The development and...
In which of the following situations may the internal audit activity report conformance with the Standards?
In which of the following situations may the internal audit activity report conformance with the Standards?A . An internal audit activity has been in existence at least five years and has not completed an external assessment,B . An internal auditor was assigned to an audit engagement but did not meet...
Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s records.
Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s records. 4, Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services.A . 1 and 3.B.B . 1 and 4.C . 2 and 3.D ....
In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?
In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?A . Involve board members in hiring activities and request advice.B . Require all internal audit staff to complete...
Which course of action should the auditor take?
While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?A . Proceed with the audit engagement, but do not include the relative's information.B . Have the chief audit executive...
