Question 1

An internal auditor is planning a consuming engagement and the objective is to identify opportunities to improve the efficiency of the organization’s procurement process. The auditor is preparing to conduct a preliminary survey of the area. Which of the following approaches would be most useful to obtain relevant information to support the engagement objective?

Options :

A :

Complete a transaction walkthrough fiat focuses on the design and operation of financial reporting controls

B :

Conduct interviews with senior management to obtain their input and insights regarding operational controls.

C :

Perform a comprehensive review of the organization s existing policies and standard operating procedures.

D :

Review the procurement process map w*h employees who carry out key activities to obtain their input and insights.

Answer: D

Question 2

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

Question 3

An internal auditor has suspicions that the management of a department splits me number of planned purchases to avoid the approval process required for larger purchases. Which of the following would be the most efficient technique to help the auditor identify the seventy of this malpractice?

Options :

A : Examining the entire population

B : Asking management about the malpractice

C : Testing a sample of random transactions.

D : Using data analytics

Answer: D

Question 4

An internal auditor used a risk and control matrix to prepare a work program for testing a software release.

During the engagement planning stage, he tested the design of

the release procedure as a key control and concluded that the control was not designed well. During the

performance stage, he tested the operation of this control and

concluded that it was implemented as designed. Which of the following statements is true regarding this

scenario?

Options :

A : The test of the control design should have occurred at the performance stage.

B : The test of the operating effectiveness of the control was not necessary.

C : A risk and control matrix is not appropriate for this type of engagement.

D : The test of the operating effectiveness of the control should have occurred at the planning stage.

Answer: B

Question 5

During an internal audit engagement, which of the following is true regarding the decision to use statistical sampling or nonstatistical sampling?

Options :

A : The decision affects the test procedures performed.

B : The auditor-s response to errors detected will be influenced.

C : The competence of the evidence obtained is greater with statistical sampling.

D : Nonstatistical sampling may be more cost effective.

Answer: A

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