Question 1

Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

Options :

A : Observation of the facility during operations.

B : Questioning of facility management, including the facility safety officer.

C : Analysis of facility operating reports, focusing on instances when breakdowns occurred

D : Review of records involving safety violations, filed by facility production employees.

Answer: A

Question 2

Which of the following best describes a proactive role for the internal audit activity with regard to the organization's ethics program?

Options :

A : Becoming a voting member of the organization-s internal ethics council.

B : Performing an annual organizationwide employee survey.

C : Performing an annual organizationwide employee survey.

D : Conducting annual ethics training for all employees.

Answer: C

Question 3

Which of the following is an indicator of ineffective third-party risk management?

Options :

A : Sourcing of third parties does not follow public procurement law.

B : Violations of service conditions trigger either fines or termination.

C : Due diligence of third parties is conducted only after contract signing.

D : The right-to-audit clause is limited by personal data protection regulations.

Answer: C

Question 4

Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?

Options :

A : Auditors must be given assignments based primarily upon their years of experience.

B : All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.

C : Tasks must be assigned to the audit team member who is most qualified to perform them.

D : All audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.

Answer: B

Question 5

Inadequate risk assessment would have the strongest negative impact in which of the following phases of an audit engagement?

Options :

A : Determining the scope.

B : Reviewing internal controls.

C : Testing

D : Evaluating findings.

Answer: A

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