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During a review of the treasury function an internal auditor identified a risk that all bank accounts may net to include in the daily reconciliation process.

Which of the following responses would be most effective to mitigate this risk?

A.

The treasury supervisor establishes a threshold for amounts on bank statements to be reconciled against data in the system

B.

The treasury analyst performs a daily reconciliation of al bank statements obtained via email against data in the system

C.

The treasury analyst reviews a daily report automatically generated by the treasury system, which shows bank statements that have not been uploaded into the accounting system.

D.

The treasury supervisor seeks an annual confirmation from the bank regarding the bank statements processed within a year

According to IIA guidance, which of the following is true regarding audit supervision?

1. Supervision should be performed throughout the planning, examination, evaluation, communication, and follow-up stages of the audit engagement.

2. Supervision should extend to training, time reporting, and expense control, as well as administrative matters.

3. Supervision should include review of engagement workpapers, with documented evidence of the review.

A.

1 and 2 only

B.

1 and 3 only

C.

2 and 3 only

D.

1, 2, and 3

An internal auditor determines that certain information from the engagement results is not appropriate for disclosure to all report recipients because it is privileged. In this situation, which of the following actions would be most appropriate?

A.

Disclose the information in a separate report.

B.

Distribute the information in a confidential report to the board only

C.

Distribute the reports through the use of blind copies.

D.

Exclude the results from the report and verbally report the conditions to senior management and the board.

An internal auditor wanted to determine whether company vehicles were being used for personal purposes She extracted a report that listed company vehicle numbers business units to which the vehicles are allocated travel dates, travel duration and mileage She then filtered the data for weekend dates Which of the following additional information would the auditor need?

A.

Names and work titles of employees

B.

Description of responsibilities of business units.

C.

Average fuel consumption data of vehicles

D.

Location and route data of vehicles

An internal auditor is asked to determine why the production line for a large manufacturing organization has been experiencing shutdowns due to unavailable pacts The auditor learns that production data used for generating automatic purchases via electronic interchange is collected on personal computers connected by a local area network (LAN) Purchases are made from authorized vendors based on both the production plans for the next month and an authorized materials requirements plan (MRP) that identifies the parts needed per unit of production The auditor suspects the shutdowns are occurring because purchasing requirements have not been updated for changes in production techniques Which of the following audit procedures should be used to test the auditor's theory?

A.

Compare purchase orders generated from test data input into the LAN with purchase orders generated from production data for the most recent period

B.

Develop a report of excess inventory and compare the inventory with current production volume

C.

Compare the pans needed based on current production estimates and the MRP for the revised production techniques with the purchase orders generated from the system for the same period

D.

Select a sample of production estimates and MRPs for several periods and trace them into the system to determine that input is accurate

The chief audit executive (CAE) determined that the internal audit activity lacks the resources needed to complete the internal audit plan Which of the following would be the most appropriate action tor the CAE to take?

A.

Use guest auditors from within the organization, and leverage their experience by assigning them to lead engagements m areas where they previously worked

B.

Outsource some of the audits to the organization s external auditor who is already familiar with the organization

C.

Invite nonauditors to join the internal audit activity for a two-year rotational position, and assign them to join audit teams that are reviewing areas where they have no previous management responsibility

D.

Recruit recent college graduates and employ them as audit interns with an aim to offer permanent employment

Which of the following would most Holy reflect the best possible engagement objectives?

A.

Engagement objectives derived from risk assessment results from a company's risk function experts.

B.

Engagement objectives derived from senior management's risk assessment results

C.

Engagement objectives derived from the mental audit activity's own risk assessment results

D.

Engagement objectives derived from risk assessment results from both senior management and the company's risk function experts

An internal auditor collected several employee testimonials Which of the following is the best action for the internal auditor to take before drawing a conclusion?

A.

Ensure the testimonials are well documented

B.

Substantiate the testimonials with physical or documentary evidence

C.

Corroborate testimonials with the results from other soft control techniques

D.

Review the testimonials with the interviewed employees

According to IIA guidance, which of the following are the most important objectives for helping to ensure the appropriate completion of an engagement?

1. Coordinate audit team members to ensure the efficient execution of all engagement procedures.

2. Confirm engagement workpapers properly support the observations, recommendations, and conclusions.

3. Provide structured learning opportunities for engagement auditors when possible.

4. Ensure engagement objectives are reviewed for satisfactory achievement and are documented properly.

A.

1, 2, and 3

B.

1, 2, and 4

C.

1, 3, and 4

D.

2, 3, and 4

Which of the following is an advantage of utilizing an external fraud specialist in a suspected fraud investigation?

A.

Increased access to the organization’s employees.

B.

Increased ability to preserve evidence and the chain of command.

C.

Increased ability to scrutinize the organization's key business processes.

D.

Increased access to the organization’s software and proprietary data.