Question 1

Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?

Options :

A : Delegate final approval of the risk-based internal audit plan to the chief audit executive (CAE).

B : Approve the annual budget and resource plan for the internal audit activity.

C : Assist the CAE with hiring objective and competent internal audit staff.

D : Encourage the CAE to communicate and coordinate with the external auditor.

Answer: A

Question 2

Which of the following is an example of a physical security control that should be in place at an organization's data center?

Options :

A : Backup servers in the data center are stored in an environmentally controlled location

B : All users have a unique ID and password to access data

C : Swipe cards are used to access the data center

D : Firewalls and antivirus protection are in place to prevent unauthorized access to data.

Answer: C

Question 3

A chief audit executive (CAE) is determining which engagements to include on the annual audit plan. She would like to consider the organization's attitude toward risk and the degree of difficulty in achieving objectives. Which of the following resources should the CAE consult?

Options :

A : The corporate risk register.

B : The strategic plan.

C : Internal and external audit reports.

D : The board-s meeting records.

Answer: B

Question 4

The critical path for any project is the path that exhibits which of the following characteristics?

Options :

A : Has the longest duration in time.

B : Costs the most money.

C : Requires the largest amount of labor

D : Is deemed most important to the project.

Answer: A

Question 5

The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?

Options :

A : The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.

B : The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.

C : The assigned internal auditor must not assume management responsibilities while performing the engagement.

D : The assigned internal auditor must maintain objectivity while performing the engagement.

Answer: A

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