Exam 4: Conducting the Internal Audit Engagement

An internal auditor found that the cost of some material installed on capital projects had been transferred to the inventory account because the capital budget had been exceeded. Which of the following would be an appropriate technique for the auditor to use to determine the extent of the problem?

The chief audit executive established an internal audit activity (IAA) performance standard requiring all audit reports to be issued within 48 hours of the exit meeting with the client. Which of the following describes an exit meeting strategy that would best help the IAA meet this performance standard?

Which of the following methods would an auditor most likely use to document a complex sales order process?

During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?

According to IIA guidance,when performing a compliance audit of data security standards for a large e-commerce retailer, which of the following would represent the least likely area of risk exposure?

An internal auditor and engagement client are deadlocked over the auditor's differing opinion with management on the adequacy of access controls for a major system. Which of the following strategies would be the most helpful in resolving this dispute?

According to IIA guidance, which of the following accurately describes the responsibilities of the chief audit executive with respect to the final audit report? 1. Coordinate post-engagement conferences to discuss the final audit report with management. 2. Include management's responses in the final audit report. 3. Review and approve the final audit report. 4. Determine who will receive the final audit report.

Which of the followings statements describes a best practice regarding assurance engagement communication activities?

Which of the following best describes the four components of a balanced scorecard?

Which of the following statements is false regarding audit criteria?

Risk assessments can vary in format, but generally include: 1. A description of identified risks. 2. Tests of audit controls. 3. A system of rating risks. 4. Sample size identification.

An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?

Which of the following tests must an internal auditor perform in order to ensure that inbound electronic data interchange (EDI) transactions are received and translated accurately?

The scope of a business process review primarily involves:

Which of the following statements is true pertaining to interviewing a fraud suspect? 1. Information gathered can be subjective as well as objective to be useful. 2. The primary objective is to obtain a voluntary written confession. 3. The interviewer is likely to begin the interview with open-ended questions. 4. Video recordings always should be used to provide the highest quality evidence.

All of the following tools are employed to control large-scale projects except:

Which of the following items should be addressed in an organization's privacy statement?

Which of the following is true regarding roles and responsibilities in risk management processes?

An organization's internal audit plan includes a recurring assurance review of the human resources (HR) department. Which of the following statements is true regarding preliminary communication between the auditor in charge (AIC) and the HR department? 1. The AIC should notify HR management when the draft audit plan is being developed, as a courtesy. 2. The AIC should notify HR management before the planning stage begins. 3. The AIC should schedule formal status meetings with HR management at the start of the engagement. 4. The AIC should finalize the scope of the engagement before communicating with HR management.

A consumer electronics company is considering acquiring a small flash memory manufacturer. An internal auditor has been assigned to determine if the manufacturer's accounts payable contain all outstanding liabilities. Which audit procedure is not relevant for this objective?