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According to IIA guidance, which of the following activities would typically be examined when using the maturity model approach for assessing an organization's risk management program?

A.

Monitor and review

B.

Performance measurement.

C.

Setting the context.

D.

Communication.

Which of the following statements is true regarding internal controls?

A.

Strategic objectives are prerequisites to establishing internal controls.

B.

Internal controls eliminate process breakdowns caused by human errors.

C.

Well-established internal controls cannot be overridden.

D.

Robust internal controls ensure business success.

Which of the following is the best reason why the engagement supervisor should take care in explaining to local management the criteria that will be used to measure the effectiveness of the control environment?

A.

The assessment will cover soft controls and company values.

B.

The assessment will focus on the policy for a particular process.

C.

The assessment will lack a defined scope

D.

The assessment will probably uncover fraud risks.

The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently.

Which common characteristics of fraud will the practice and policy most likely reduce?

A.

Pressure or incentive.

B.

Opportunity.

C.

Rationalization.

D.

Commitment.

According to MA guidance, which of the following gives the internal audit activity the authority to request supporting documentation for the invoices of a third-party service provider?

A.

The internal audit policy manual.

B.

The internal audit charter.

C.

The board of directors.

D.

The quality assurance and improvement program.

Which of the following statements is true with regard to the quality assurance and improvement program (GAIP)?

A.

As the head of the organization, the CEO selects and appoints the external quality assessment team to perform the OAIP reviews.

B.

The chief audit executive determines the scope and frequency of both internal and external quality assessments based on the availability and capacity of resources in accordance with the annual internal audit plan.

C.

Minutes of meetings held with senior management and the board to discuss the scope and frequency of internal and external assessments support the OAIP reporting requirement.

D.

The internal audit activity needs to assess whether each engagement on the annual internal audit plan is conducted in conformance with the Standards.

According to IIA guidance, which of the following training methods is considered most effective in assisting new entry-level internal auditors in achieving competence with internal audit practices in the workplace?

A.

Pursuance of an internal audit certification.

B.

Enrollment in internal audit practice webinars.

C.

Attendance of internal audit workshops.

D.

Involvement in a variety of audit assignments.

Which of the following is a way to demonstrate an individual internal auditor's competency through continuing professional development?

A.

Create different training budgets for each of the internal auditors

B.

Define average training hours per auditor as a team performance measure

C.

Analyze internal audit client survey feedback following audits

D.

Review training records for all internal auditors

Which of the following scenarios violates The IIA's standard regarding internal audit independence?

A.

The chief audit executive (CAE) reports on the internal audit activity's day-to-day tasks and responsibilities to the CEO.

B.

An assessment of the risk management function is reviewed by an outside consulting firm because the CAE is temporarily fulfilling the role of risk manager.

C.

The CAE regularly meets with the organization's chief risk officer, who validates all reported audit findings and dictates which will be Included In the package to the audit committee.

D.

The internal audit activity will experience staffing shortages for the next six months due to planned and unplanned leaves of absence; therefore the CAE proposed including fewer audits in the annual audit plan compared to the previous financial year.

During an assurance engagement an internal auditor discovered that risk limits risk limit were set for a new market expansion project Management of the area under review was eager to comply and submitted a potential risk limit value for the auditor's review and approval. Which of the following would be an appropriate course of action for the auditor to take?

A.

Review the submission and if no further remarks exist approve the risk limits

B.

Provide advice if needed and ask management of the area under review to forward to senior management and the board for approval

C.

Develop risk limit calculation criteria and ask management of the area under review to resubmit the values.

D.

Avoid providing any advice or review until the audit report is issued

The chief audit executive (CAE) has hired a new internal auditor who was immediately assigned to a procurement function audit. Because the new auditor's name is similar to that of the procurement manager, some staff members think the two are related, although they are not. Which of the following actions is most appropriate for the CAE to take?

A.

Take no action, as there is no impairment to independence.

B.

Remove the new internal auditor from the engagement team.

C.

Discuss the matter with the appropriate personnel to alleviate concerns.

D.

Closely supervise the new auditor and carefully review his work.

Which of the following drivers of fraud is directly controllable by an organization?

A.

Pressure

B.

Rationalization

C.

Opportunity

D.

Incentive

Which of the following is considered to be a threat to the internal auditor's objectivity?

A.

The auditor drafted the operational procedures of the area that she is currently auditing.

B.

The auditor received a bonus that was approved by the board of directors.

C.

The assigned auditor recommended operational procedures for the organization.

D.

The assigned auditor rotated out of the same business activity three years ago

According to the Standards, which of the following is a requirement for internal audit professional development plans?

A.

Plans must include a path to certification so that each internal auditor has a certification in auditing finances.

B.

Plans must ensure that staff development activities are based primarily on the skills and competencies needed to complete the audit plan.

C.

Plans must include rotating audit areas so that auditors acquire business knowledge to be efficient in performing engagements.

D.

Plans must include rotating auditors out into business units for temporary assignments so they can obtain more business knowledge.

Which of the following statements is true regarding the role of the internal audit activity in the organization's risk management process?

A.

The internal audit activity should not be responsible for developing the organization's risk management framework, even with appropriate safeguards.

B.

The internal audit activity is typically responsible for alerting operational management to emerging risks and changes in regulatory scenarios

C.

The internal audit activity may coach management on risk response scenarios if safeguards have been implemented.

D.

The internal audit activity should avoid giving assurance regarding the accuracy of risk evaluations if safeguards have not been implemented.