Question 1

A newly appointed chief audit executive (CAE) started analyzing the organization’s policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwide practices is most likely to be acceptable to the CAE?

Options :

A : Internal auditors’ performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits.

B : Standard training for each employee, including internal auditors, is 10 hours per year.

C : To enhance efficiency, internal auditors should not be rotated regularly among engagements.

D : Hiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.

Answer: D

Question 2

Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?

Options :

A : ISO 26000.

B : Global Reporting Initiative.

C : Open Compliance and Ethics Group.

D : COSO-s enterprise risk management framework.

Answer: B

Question 3

Which of the following best describes the approach the internal audit activity should take to assess and make appropriate recommendations to improve the organization?

Options :

A : To evaluate an organization-s governance processes for making strategic and operational decisions, internal auditors should review the organization-s policies and processes related to staff compensation.

B : To determine how an organization provides oversight of its risk management and control activities, internal auditors should review board meeting minutes and the board policy manual.

C : To assess how an organization promotes ethics and values, both internally and among its external business partners, internal auditors should review the organization-s related objectives, programs, and activities.

D : To evaluate how an organization ensures effective performance management and accountability, internal auditors should review previously conducted risk assessments

Answer: B

Question 4

Management of an area under review is aggressive, upset, and questioning the knowledge and experience of the organization’s internal auditors, as the audit results highlight critical findings. The relationship between the internal audit activity and management has continued to deteriorate, as previous audit reports also showed a large number of issues. What would be the best strategy for working through the current audit results while also attempting to repair the relationship with management?

Options :

A : Take an accommodating approach and change the overall rating of the audit report.

B : Take a compromising approach by modifying the tone of the report, while maintaining the critical findings.

C : Take an assertive approach and be persistent in attempting to convince the director.

D : Take an assisting approach and offer to assist with the implementation of action plans.

Answer: B

Question 5

The chief audit executive (CAE) has been asked to manage the regulatory compliance function for the organization's retail store operations. Store operations are included in the annual audit plan.

Which of the following strategies best fulfills the requirements of the Standards regarding these audits?

Options :

A : The scope of store operations audits should exclude compliance.

B : Store operations audits can be fully executed with appropriate disclosure to the board.

C : Store operations audits should be performed by an external service provider.

D : A store operations compliance audit should be performed by a staff internal auditor under the direction of the CAE.

Answer: C

Higher Test Marks with Free Online IIA-CIA-Part1-3P Exam Practice

Buying Options: