Question 1

During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report. Which of the following is especially important in dealing with this type of situation?

Options :

A : Soft skills in communication, negotiation, and collaboration.

B : Technical skills in the area under review.

C : Professional qualifications and certification in internal auditing.

D : Confidentiality and independence.

Answer: A

Question 2

According to The IIA's Code of Ethics, which of the following statements is true?

Options :

A : When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.

B : When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.

C : When an internal auditor disagrees with the treatment received by workers in the organization-s foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.

D : When an internal auditor continues with an audit engagement, despite the audit client-s claims that the work performed is unnecessary and redundant he fails to demonstrate competency.

Answer: C

Question 3

Which of the following is not an appropriate activity for internal auditors to perform?

Options :

A : Recommend management seek a consulting firm to advise on outsourcing.

B : Highlight matters that require management-s attention.

C : Implement solutions for specific organizational problems.

D : Accumulate data, obtain varying views, and report information to senior management.

Answer: C

Question 4

According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?

Options :

A : It increases the likelihood of obtaining the audit client-s agreement with the results.

B : It ensures that an appropriate chain of evidence is maintained through the workpapers.

C : It helps ensure that appropriate professional judgments and conclusions are made.

D : It is required to demonstrate that effective engagement supervision has occurred.

Answer: C

Question 5

According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?

Options :

A : Control environment.

B : Control activities.

C : Risk assessment.

D : Monitoring.

Answer: D

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