Question 1

According to IIA guidance, the nature and scope of assurance and consulting services to be offered must be clearly delineated in which of the following internal audit documents?

Options :

A : The internal audit policies and procedures handbook.

B : The internal audit charter.

C : The internal audit mission statement.

D : Each internal audit engagement letter.

Answer: B

Question 2

The director of purchasing, a certified internal auditor (CIA), signs a contract to procure a large order from a supplier whose products provide the best price, quality, and performance. A few days after signing the contract, the supplier presents the CIA with $1, 000 as a gift. Which statement regarding acceptance of the money is correct?

Options :

A : Accepting the money would be prohibited only if it were non-customary.

B : Accepting the money would violate the IIA Code of Ethics.

C : Because the CIA is not acting as an internal auditor, accepting the money would be governed only by the organization-s code of conduct.

D : Because the contract was signed before the money was offered, accepting the money would not violate the IIA Code of Ethics.

Answer: B

Question 3

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 4

An internal auditor is gathering evidence for an organization's internal audit engagement and requests a sample of vendor invoices from the organization. Which of the following is true regarding the reliability of this evidence?

Options :

A : The invoices have zero reliability.

B : The invoices have low reliability.

C : The invoices have medium reliability.

D : The invoices have high reliability.

Answer: C

Question 5

An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.Upon being informed, the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.Which course of action should the CAE follow?

Options :

A : Report the communication to the organization-s general counsel.

B : Report the instruction to the chairperson of the audit committee.

C : Inform the head of the organization that the investigation will continue as planned.

D : Inform the external auditors of the findings and the mandate to stop investigating.

Answer: B

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