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

Which of the following is the primary reason for internal auditors to conduct interim communications with management of the area under review?

Options :

A : To demonstrate good project oversight

B : To provide timely discussion of results

C : To demonstrate internal auditor proficiency

D : To follow up on previously requested information

Answer: B

Question 3

An organization has a health and safety division that conducts audits to meet regulatory requirements. The chief health and safety officer reports directly to the CEO. Which of the following describes an appropriate role for the chief audit executive (CAE) with regard to the organization's health and safety program?

Options :

A : The CAE has no role to play, because the chief health and safety officer reports to a senior executive.

B :

The CAE should coordinate with, and review the work of, the chief health and safety officer to gain an understanding of whether risks related to health and safety are managed properly.

C :

The CAE should give periodic reports directly to the regulator regarding health and safety issues, as it is the appropriate regulatory oversight body.

D :

The CAE should hire an independent external specialist to conduct an annual assessment and provide assurance over the effectiveness of the health and safety program and the reliability of its reports.

Answer: B

Question 4

Senior management wants assurance that third-party contractors are following procedures as agreed with the organization. Which type of audit would be most appropriate to achieve this objective?

Options :

A : A compliance audit.

B : A due diligence audit.

C : A financial audit.

D : An external audit.

Answer: A

Question 5

Which of the following is the next step in understanding a business process once an internal auditor has identified the process?

Options :

A : Determine process outputs.

B : Determine process inputs.

C : Determine process activities.

D : Determine process goals.

Answer: D

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