Exam 3: The Internal Audit Activity Role in Governance, Risk, and Control

An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims. Which of the following methods would be most effective and efficient in completing this task?

Which of the following is the primary concern of an internal auditor in a comprehensive audit of an organization?

A receiving department receives copies of purchase orders for use in identifying and recording inventory receipts. The purchase orders list the name of the vendor and the quantities of the materials ordered. A possible error that this system could allow is:

An organization's chief audit executive (CAE) has been asked to conduct an assurance engagement for an information technology system that was subject to a consulting engagement in the prior year. How should the CAE respond?

Continuing Professional Education (CPE) hours for Certified Internal Auditors may be achieved by:

Which of the following best describes the assessment of risks?

A chief audit executive (CAE) for a specialty retailer is asked by management to review the controls in place to manage their electronic funds transfer process. The internal audit activity has no experience with similar engagements. What is the most appropriate course of action for the CAE to take?

In developing an appropriate work program for an audit engagement, the most important factor for an audit supervisor to consider is the:

An internal auditor makes a series of observations when performing an analytical review of division operations. The auditor notes the following things: the current ratio is increasing and the quick ratio is decreasing, sales and current liabilities have remained constant, and the number of day sales in inventory is increasing. Which conclusion should the auditor draw from this data?

A daily log of treasury dealers who exceeded their authorized limits serves as a:

After being terminated due to downsizing, an internal auditor finds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?

An internal audit activity encounters a scope limitation from senior management that will affect its ability to meet its goals and objectives for a potential engagement client. The nature of the scope limitation should be.

Which fraudulent act is designed primarily to benefit the organization?

According to IIA guidance, which of the following objectives of an assurance engagement for the organization's risk management process is valid?

The primary reason that a bank would maintain a separate compliance function is to:

Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?

Which of the following statements is not true?

Which of the following is a key performance indicator for an internal audit function?

The chief audit executive should periodically report the internal audit activity's purpose, authority, responsibility, and performance, as well as significant risk exposures and control issues, to which of the following?

An internal auditor pays to participate in the company's annual golf tournament, which is held outside of normal business hours. The auditor wins the putting contest and is awarded an all-expense-paid weekend vacation. According to the IIA Code of Ethics regarding objectivity, the auditor's best course of action would be to: