Question 1

An auditor is using audit software to check inventory accuracy. Which of the following would be an indicator of poor input edit controls?

Options :

A : Negative quantities on hand.

B : Total dollar values of zero for some parts.

C : Alpha characters in the field for order lead time.

D : Reorder levels set too high.

Answer: C

Question 2

Which of the following risk management activities is most appropriate for an internal auditor to undertake?

Options :

A : Impose risk management processes.

B : Coordinate risk management activities.

C : Implement risk responses on management-s behalf.

D : Review the management of key risks.

Answer: D

Question 3

Which of the following processes should be included in a benchmarking activity?I. Identify key measures.II. Collect data on performances and practices.III. Identify opportunities for improvement.

Options :

A : II only

B : I and III only

C : II and III only

D : I, II, and III.

Answer: D

Question 4

Which of the following would not be a factor for senior management to consider when determining the internal audit activity's role in an organization's risk management process?

Options :

A : The extent to which the internal audit activity is outsourced.

B : The maturity level of risk management practices in the organization.

C : The competency of the internal auditors in risk management.

D : The nature of the business and the environment in which the organization operates.

Answer: A

Question 5

Which of the following is true regarding internal audit role's in The IIA's Three Lines Model?

Options :

A : As internal control is part of risk management, the internal audit role in risk management implies reduced emphasis on internal control.

B : Internal audit can blur the distinction between the second and the third lines as long as value is added.

C : Internal audit cannot rely on other assurance providers when opining on the effectiveness of risk management.

D : Internal audit should be aligned with first- and second-line functions through effective communication, cooperation, and collaboration.

Answer: D

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