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An internal auditor is reviewing the results of an employee survey at a mining company. Which of the following would alert the auditor to a potential ethics issue?

A.

Women account for 20% of the total number of employees in the company.

B.

Thirty percent of employees feel confident in raising concerns without a fear of retaliation.

C.

Most employees believe that transparent and fair decision-making forms the basis of business ethics.

D.

Employees with longer work experience believe that they deserve more privileges than new hires.

Which of the following statements is true regarding how the scope of a consulting engagement should be established?

A.

The engagement client should be able to determine the scope to be applied to the engagement

B.

The internal auditor should establish a scope that does not impair her objectivity

C.

Any attempts by the engagement client to limit the scope should be considered a scope limitation

D.

The scope should include reviewing the effectiveness of the internal control environment

According to HA guidance, which of the following would best support the internal auditor's conclusion that the organization's risk management processes are effective?

A.

The organization has identified all applicable operational and financial risks.

B.

The organization has documented its strategic and business objectives.

C.

The organization has selected risk responses aligned with its risk appetite.

D.

The organization has documented risk information pertinent to its business.

Which of the following would a chief audit executive most likely use to identify a need for improvement in a staff internal auditor's business acumen?

A.

A quality assessment review.

B.

An internal audit client survey.

C.

A control self-assessment.

D.

A peer review of the internal audit activity.

Which of the following statements is true regarding the internal audit activity's quality assurance and improvement program (QAIP)?

A.

The QAIP scope includes assurance work performed by the internal audit activity but not consulting work.

B.

The QAIP verifies conformance with the Definition of Internal Auditing, Code of Ethics, and Standards.

C.

QAIP reports are for internal use primarily and typically are not shared with members outside of the internal audit activity.

D.

QAIPs make a distinction between fully outsourced internal audit activities and in-house internal audit teams, as a different set of criteria is applied for each.

An internal auditor creates a professional development plan to obtain more experience in the organization's environmental, social, and corporate governance initiatives. Which of the following would the auditor include in the plan to support these objectives?

A.

A plan to study for and obtain a certification in nonprofit management.

B.

A deadline within the individual development plan to meet the overall engagement objectives.

C.

A plan to perform a variety of engagements to develop general skills that could be used to assess environmental, social, and governance initiatives.

D.

A request to attend the organization's committee meeting that is focused on strategic community awareness.

Which of the following best describes a proactive role for the internal audit activity with regard to the organization's ethics program?

A.

Becoming a voting member of the organization's internal ethics council.

B.

Performing an annual organizationwide employee survey.

C.

Reviewing all departmental ethics-related policies.

D.

Conducting annual ethics training for all employees.

The level of authority for the internal audit activity is granted by which of the following?

A.

The chief audit executive.

B.

The internal audit charter.

C.

The International Professional Practices Framework.

D.

The IIA's Code of Ethics.

Which of the following is an area that an organization would most likely include as part of its corporate social responsibility reporting?

A.

The profitability impact of its products in developing markets.

B.

The amount of political donations to local government races.

C.

The number of complaints related to traffic from its new factory.

D.

The compensation packages awarded to senior management.

At the beginning of an IT development project key risks were identified and assessed and risk owners were appointed Six months later the IT development team reported that the project Is significantly over budget, it will not be completed on time and key personnel had left the organization. Which of the following risk management practices should be improved for future projects?

A.

Risk response.

B.

Risk assessment

C.

Risk monitoring.

D.

Risk avoidance.

Which of the following situations would cause the greatest concern regarding impairment of internal audit objectivity?

A.

The eternal auditor reviewed the audit clients proposed procedures and standards of control and offered suggested improvements at the client’s request.

B.

The internal auditor performed nonaudit work for the audit client which was communicated to senior management and the board before the engagement was performed and restated in the audit report

C.

internal auditors accepted limited access to the audit client's systems and records m accordance with the scope of the engagement

D.

The internal auditor used his in-depth knowledge of systems development to assist the audit client m designing a new operational system with robust controls.

The chief audit executive (CAE) has decided to outsource an audit of the organization's cloud governance in the annual audit plan. Why would the CAE outsource this audit?

A.

Lack of internal audit staff proficiency.

B.

Lack of audit planning.

C.

Lack of internal assessments.

D.

Lack of due professional care.

A chief audit executive (CAE) has just joined an organization with an existing internal audit activity. Based on her review of the current organizational structure, the CAE determines that the internal audit activity lacks adequate independence. Which of the following actions is the CAE's best step to take next to move the internal audit activity toward organizational independence?

A.

Ensure the limitations are disclosed through communication with the board and senior management, so that the internal audit activity can continue operating under the same organizational structure.

B.

Request that the board restructure the reporting line of the internal audit activity to ensure the CAE has unrestricted access to the board.

C.

Rotate internal audit assignments among members of the internal audit activity to minimize the effects of the current structure.

D.

Train internal auditors about organizational independence and have them sign an acknowledgment of understanding.

An internal auditor is assessing how the organization processes financial transactions and whether written policies and procedures are followed. The auditor requested to meet with certain employees to understand their related roles and responsibilities. However the employees refuse to meet with the auditor claiming they are too busy. Which of the following responses would best demonstrate the auditor's conflict-resolution skills?

A.

The auditor considers the employees to be unresponsive and proceeds to document the actions and concerns as a scope limitation that can affect the engagement

B.

The auditor considers other options to determine whether the employees are processing financial transactions as required by the organization

C.

The auditor meets with senior management of the organization to discuss the employees' behavior and possible resolutions that would satisfy all parties

D.

The auditor meets with the department supervisor and staff to discuss the employees' actions in order to obtain an understands and potential resolution

Which of the following would best preserve the organizational independence of the internal audit activity?

A.

The internal audit charter is approved by the chief audit executive (CAE).

B.

The CAE reports functionally to the CEO.

C.

The CAE's internal audit plan is endorsed by the board.

D.

The chief financial officer determines the appointment of the CAE.