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

During a payroll audit of a large organization, an auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:

Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?

According to IIA guidance, which of the following statements regarding the internal audit charter is true?

According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement? 1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits. 2. The needs and expectation of clients, including the nature, timing, and communication of engagement results. 3. The application of technology-based audit and other data analysis techniques, where appropriate. 4. The relative complexity and extent of work needed to achieve the engagement's objectives.

The results of an internal audit activity's (IAA) quality assurance and improvement program are favorable and an external assessment was completed within the last five years. Which of the following statements may the IAA use to describe its work?

According to the Standards, a review team must express an opinion on which of the following when performing an external assessment of an internal audit activity? 1. Conformance with the Standards and IIA Code of Ethics. 2. Effectiveness of continuous improvement activities. 3. Feedback from internal audit customers and other stakeholder groups. 4. Efficiency and effectiveness of the internal audit activity's administration processes.

The chief audit executive's responsibility regarding control processes includes:

According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?

If an internal auditor discloses confidential information in response to a lawsuit, the internal auditor has violated.

In which of the following circumstances would an internal auditor not need to search for other signs of fraud?

Which of the following items of evidence is most valid to support a finding that a public utility's repair crews are sometimes required to work under unsafe conditions?

Which of the following is not considered one of the most common red flags for perpetrators of fraud?

Which of the following should be the first step that an internal auditor takes to establish data integrity when building an audit working copy of a large database?

Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

Which of the following actions does not violate the IIA Code of Ethics or Standards?

An internal audit activity (IAA) provided assurance services for an activity it was responsible for during the preceding year. As a result, which IIA Code of Ethics principle is presumed to be impaired?

Which of the following statements about risk assessment is true?

Which of the following would be the least desirable criteria against which to judge current operations of a company's treasury function?

Which of the following activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?

The audit committee has asked the chief audit executive (CAE) to assist in the selection of a new external audit firm. Which of the following is an appropriate action by the CAE?