Question 1

Which of the following is an appropriate consideration by the auditor when preparing an engagement program for a human resource audit?

Options :

A : State the work steps in the form of questions.

B : Use standard audit program for HR from previous years.

C : Include in the audit program certain audit tests requested by audit client.

D : Defer preparation of the audit program after the field work.

Answer: C

Question 2

Which of the following best describes the approach the internal audit activity should take to assess and make appropriate recommendations to improve the organization?

Options :

A : To evaluate an organization-s governance processes for making strategic and operational decisions, internal auditors should review the organization-s policies and processes related to staff compensation.

B : To determine how an organization provides oversight of its risk management and control activities, internal auditors should review board meeting minutes and the board policy manual.

C : To assess how an organization promotes ethics and values, both internally and among its external business partners, internal auditors should review the organization-s related objectives, programs, and activities.

D : To evaluate how an organization ensures effective performance management and accountability, internal auditors should review previously conducted risk assessments

Answer: B

Question 3

Which of the following is a benefit from reduced testing during a particular phase of an audit engagement?

Options :

A : The size of the internal audit activity can be reduced.

B : There is less concern about assessing inherent risk.

C : The level of planned audit risk is lowered.

D : Additional audit hours are available for pursuing other engagement objectives.

Answer: D

Question 4

Which of the following would have the least impact (either positive or negative) on an assessment of a department's control environment?

Options :

A : The department managed long-term investments, including investment in derivatives and other financial instruments, to maximize return.

B : The department manager sets a tone of honesty and integrity in all business dealings and this tone is emulated by department personnel.

C : Many department functions were duplicated or verified by other department employees as part of the department-s normal procedures.

D : Audit tests designed to verify compliance with control procedures detected a general failure to follow standard procedures for transaction authorization.

Answer: A

Question 5

Which of the following options describes the reason that conformance with The IIA’s Code of Ethics is mandatory for internal auditors?

Options :

A : Ethical compliance provides the basis for stakeholder confidence in the competence of the internal audit activity and of professional internal auditors.

B : Ethical compliance is necessary for internal auditors and the internal audit activity to accept responsibility for providing absolute assurance about the organization’s risk management.

C : Ethical compliance provides the basis for stakeholder trust and confidence in the validity of the profession of internal auditing and the internal audit activity’s findings.

D : The internal audit activity’s ethical compliance sets the tone for the ethical compliance by the organization’s board, management, and employees.

Answer: C

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