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Which of the following would be the most appropriate next step for the auditor?
While conducting an engagement in the procurement department, the internal auditor noticed that the department head’s travel reports showed minor travel expenses, and there were no charges for hotels, meals, or transportation. However, the auditor knew that the department head frequently traveled worldwide to meet with suppliers and visit their...
An internal auditor is performing testing to gather evidence regarding an organization’s inventory account balance and is mindful of the possibility that the sample used might support the conclusion that the recorded account balance is not materially misstated when, in fact, it is. The auditor's concern best describes which of the following risks?
An internal auditor is performing testing to gather evidence regarding an organization’s inventory account balance and is mindful of the possibility that the sample used might support the conclusion that the recorded account balance is not materially misstated when, in fact, it is. The auditor's concern best describes which of...
If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?
If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?A . Evaluate the suspected activities to determine whether a forma! investigation is warranted, B. Immediately inform senior management and the board of the suspected fraud. C. Ascertain the level of resources needed...
Which of the following is the IIA Code of Ethics principle that the auditor upheld?
After being assigned to an audit of the accounts payable process, an internal auditor privately notifies the chief audit executive that she is a finalist for an open manager position within the accounts payable department. Which of the following is the IIA Code of Ethics principle that the auditor upheld?A...
Which of the following handbook policies has the greatest risk of compromising audit objectivity?
Upon joining the internal audit activity, each new auditor receives a copy of the audit handbook. Which of the following handbook policies has the greatest risk of compromising audit objectivity?A . Internal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related,...
Which of the following is an example of a detective control?
Which of the following is an example of a detective control?A . Automatic shut-off valve. B. Auto-correct software functionality. C. Confirmation with suppliers and vendors. D. Safety instructions.View AnswerAnswer: C
According to NA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?
According to NA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?A . CAE reviews and approves the annual audit plan, B. CAE meets privately with the CEO at least annually. C. CAE meets privately with the...
According to IIA guidance, which of the following statements regarding the internal audit charter is true?
According to IIA guidance, which of the following statements regarding the internal audit charter is true?A . The nature of consulting services typically is not included in the charter. B. The chief audit executive must formally review the charter at least once a year C. The nature of assurances provided...
Which of the following documents are internal auditors most likely to be asked to sign as a demonstration of due professional care?
Which of the following documents are internal auditors most likely to be asked to sign as a demonstration of due professional care? A description of their job responsibilities,A . A non-disclosure agreement. B. An annual declaration of commitment to C. The IIA s Code of Ethics. D. The internal audit...
Which of the following statements is true with regard to services provided by the internal audit activity?
Which of the following statements is true with regard to services provided by the internal audit activity?A . For consulting engagements, internal auditors do not need to be alert to control issues. B. Assurance and consulting services have similar objectives. C. Internal auditors may not perform assurance and consulting roles...
