Question 1

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 2

What is the primary reason that audit supervision includes approval of the engagement report?

Options :

A : To ensure the objectives of the area under review are met.

B : To ensure senior management supports the report-s conclusions.

C : To ensure report style and grammar are appropriate.

D : To ensure report findings are substantiated.

Answer: D

Question 3

During a review of the treasury function an internal auditor identified a risk that all bank accounts may net to include in the daily reconciliation process. Which of the following responses would be most effective to mitigate this risk?

Options :

A :

The treasury supervisor establishes a threshold for amounts on bank statements to be reconciled against data in the system

B :

The treasury analyst performs a daily reconciliation of al bank statements obtained via email against data in the system

C :

The treasury analyst reviews a daily report automatically generated by the treasury system, which shows bank statements that have not been uploaded into the accounting system.

D :

The treasury supervisor seeks an annual confirmation from the bank regarding the bank statements processed within a year

Answer: C

Question 4

A chief audit executive is preparing interview questions for the upcoming recruitment of a senior internal auditor. According to IIA guidance, which of the following attributes shows a candidate's ability to probe further when reviewing incidents that have the appearance of misbehavior?

Options :

A : Integrity.

B : Flexibility

C : Initiative.

D : Curiosity.

Answer: D

Question 5

Senior IT management requests the internal audit activity to perform an audit of a complex IT area. The chief audit executive (CAE) knows that the internal audit activity lacks the expertise to perform the engagement. Which of the following is the most appropriate action for the CAE to take?

Options :

A :

Decline the audit engagement, because the Standards prohibit internal auditors from performing engagements where they lack the necessary competencies.

B :

Accept the audit engagement and use the engagement as an opportunity to develop the audit team-s IT expertise while performing the audit work.

C :

Temporarily hire an experienced and knowledgeable IT analyst from the organization-s IT department to lead the audit.

D : Outsource the audit engagement to a reputable IT audit consulting firm.

Answer: D

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