Question 1

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 2

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 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 is least likely to help ensure that risk is considered in a work program?

Options :

A : Risks are discussed with audit client.

B : All available information from the risk-based plan is used.

C : Client efforts to affect risk management are considered.

D : Prior risk assessments are considered.

Answer: A

Question 5

An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?

Options :

A :

B :

C :

D :

Answer: C

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