Question 1

The internal audit activity completed an initial risk analysis of the organization's data storage center and found several areas of concern. Which of the following is the most appropriate next step?

Options :

A : Risk response.

B : Risk identification.

C : Identification of context.

D : Risk assessment.

Answer: D

Question 2

According to IIA guidance, which of the following is a primary component of a network security strategy?

Options :

A : Application input controls

B : Firewall controls.

C : Transmission encryption controls

D : Change management controls

Answer: B

Question 3

Which of the following combinations of conditions is most likely a red flag for fraud?

Options :

A : The practice of surprise audits and the implementation of an employee support program.

B : Hiring an employee with a prior fraud conviction and yearly management review.

C : Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

D : A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.

Answer: C

Question 4

Which of the following re a result of implementing an e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and billing?

Options :

A : Higher cash flow and treasury balances

B : Higher inventory balances

C : Higher accounts receivable

D : Higher accounts payable

Answer: C

Question 5

Which of the following statements about internal audit's follow-up process is true?

Options :

A : The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.

B : The actions of external auditors and other external assurance providers is not encompassed by internal audit-s follow-up process.

C : Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.

D : The follow-up process must be complete and documented in the working papers in order to conclude the engagement.

Answer: C

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