Exam 4: Conducting the Internal Audit Engagement

An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk? A. B. C. D.

If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?

An internal auditor would most likely use attributes sampling when testing which of the following?

Which of the following is not true regarding the management of internal audit resources?

During the planning phase of an audit of the treasury function, an internal auditor conducted a risk assessment of the function in order to:

When conducting audit follow-up of a finding related to cash management routines, an internal auditor would expect to find that all of the following changes have occurred except:

Audit supervision includes approval of the engagement report in order to ensure that:

In evaluating the validity of different types of audit evidence, which of the following conclusions is not correct?

Which of the following factors would increase the confidence level in a variables sampling plan?

An internal auditor provided the following statement about division A's performance during the month: "Because supplies of raw material X were scarce, division A's profits declined by 15 percent." Which of the following can be validly concluded from the auditor's statement?

During an engagement, an internal auditor discovered that an organization's policy on delegation of authority listed six individuals who were no longer employed with the organization. In addition, four individuals acting with disbursement authority were not identified in the policy as having such authority. Which of the following is the most effective course of action to address the control weakness?

Which of the following is correct with respect to roles within an enterprise-wide risk management process? 1. The board provides oversight to the risk management process. 2. Executive management owns the risk management framework. 3. Senior management is assigned ownership of risks. 4. Internal audit modifies the risk assessment determined by management.

An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?

An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau. What action should the auditor take, considering the outsourcing decision?

According to IIA guidance, organizations have the most influence on which element of fraud?

While investigating a compromised Web server, an auditor found that the Web server logs had been deleted. The auditor should recommend that the Web server logs be:

Which of the following would be a legitimate action for the internal auditor to take when monitoring audit engagement results? 1. Disregard a certain risk because management and the board accepted the risk in the past. 2. Abdicate the responsibility for a particular risk because it is not part of the audit plan. 3. Obtain agreement from senior management that unresolved audit issues will be reported to the board. Request corrective action from management in writing.

Which of the following would most likely contribute to discrepancies between receiving reports and the number of units in a shipment?

The best method for assessing the relative importance of risk factors is to:

Cross-referencing individual payroll time cards to personnel department records and reports would allow an internal auditor to determine whether: