Question 1

According to IIA guidance, which of the following best describes the purpose of a planning memorandum for an audit engagement?

Options :

A : It documents the audit steps and procedures to be performed.

B : It documents preliminary information useful to the audit team.

C : It documents events that could hinder the achievement of process objectives.

D : It documents existing measures that manage risks in the area under review.

Answer: B

Question 2

An examination of the accounts payable function evidenced multiple findings with respect to segregation of duties. After management's response and action plan are received and documented in the final report, which of the following is most appropriate?

Options :

A : Follow up after the applicable changes have been incorporated to validate management’s response.

B : Include the items in the scope of the next scheduled audit of the accounts payable function.

C : Because management agreed with the findings, no further action is deemed necessary.

D : Have an internal audit staff member placed into the accounting department until corrections are made.

Answer: A

Question 3

A chief audit executive's report to the board showed a significant trend of recent aud4s going over planned budgeted hours. Which of the following factors could cause this trend?

Options :

A : Poor engagement supervision

B : ineffective board reporting

C : Untimely observation follows up and closure

D : Limited staff resources

Answer: A

Question 4

Which of the following best illustrates the primary focus of a risk-based approach to control self-assessment?

Options :

A : To evaluate controls regarding the computer security of an oil refinery.

B : To examine the processes involved in exploring, developing, and operating a gold mine.

C : To assess the likelihood and impact of events associated with operating a finished goods warehouse.

D : To link a financial institution-s business objectives to a work unit responsible for the associated risk.

Answer: D

Question 5

New environmental regulations require the board to certify that the organization's reported pollutant emissions data is accurate. The chief audit executive (CAE) is planning an audit to provide assurance over the organization's compliance with the environmental regulations. Which of the following groups or individuals is most important for the CAE to consult to determine the scope of the audit?

Options :

A : The audit committee of the board.

B : The environmental, health, and safety manager.

C : The organization-s external environmental lawyers.

D : The organization-s insurance department.

Answer: B

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