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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 the internal auditor's most appropriate next step?
Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?A . Immediately notify management of the area under review...
Which of the following needs to be established prior to undertaking an assessment of the quality assurance and improvement program?
Which of the following needs to be established prior to undertaking an assessment of the quality assurance and improvement program?A . Department performance standards.B . Remediation timeframes.C . Nonconformance disclosures.D . External assessment resourcesView AnswerAnswer: D Explanation: Before undertaking an assessment of the quality assurance and improvement program, it is...
If the skills and competencies are not present within the internal audit activity to complete an ad-hoc assurance engagement, which of the following is an acceptable resolution?
If the skills and competencies are not present within the internal audit activity to complete an ad-hoc assurance engagement, which of the following is an acceptable resolution?A . Politely decline the engagement due to a lack of qualified staff available at the time.B . Complete the engagement as requested, with...
Which of the following statements is most accurate with respect to the required elements of the quality assurance and improvement program?
Which of the following statements is most accurate with respect to the required elements of the quality assurance and improvement program?A . Internal assessments provide sufficient objectivity to provide evidence to the board that the internal audit activity understands the organization’s control processes.B . Quality assessments focus on the internal...
Which of the following would encourage the internal auditor to be objective in his work?
During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor's compensation. Which of the following would encourage the internal auditor to be objective in his work?A . Periodic reinforcement of the internal audit...
According to the Standards, which of the following would the auditor include in the risk register?
An internal auditor is updating the risk register for risks identified during a recent organizational risk assessment. According to the Standards, which of the following would the auditor include in the risk register?A . Management’s acceptance of inadequate controls for cybersecurity risk.B . Discussions with senior management relating to a...
Which of the following is the most appropriate idea to include?
A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy. Which of the following is the most appropriate idea to include?A . Management has overall responsibility for the effectiveness of governance, risk management, and...
Which of the following must be in existence as a precondition to developing an effective system of internal controls?
Which of the following must be in existence as a precondition to developing an effective system of internal controls?A . A monitoring process,B . A risk assessment process.C . A strategic objective-setting process.D . An information and communication process.View AnswerAnswer: B Explanation: A risk assessment process is a crucial precondition...
According to NA guidance, which of the following provides the best evidence of conformance with the Standards with respect to the proficiency required of the internal audit activity?
According to NA guidance, which of the following provides the best evidence of conformance with the Standards with respect to the proficiency required of the internal audit activity?A . Discussions with the chief audit executive.B . A listing of employee profiles and certifications.C . Inquiry of external auditors.D . Validation...
