Question 1

Which of the following best describes the four components of a balanced scorecard?

Options :

A : Customers, innovation, growth, and internal processes.

B : Business objectives, critical success factors, innovation, and growth.

C : Customers, support, critical success factors, and learning.

D : Financial measures, learning and growth, customers, and internal processes.

Answer: D

Question 2

Which of the following recommendations made by the internal audit activity (IAA) is most likely to help prevent fraud?

Options :

A :

A review of password policy compliance found that employees frequently use the same password more than once during a year. The IAA recommends that the access control software reject any password used more than once during a 12-month period.

B :

A review of internal service-level agreement compliance in financial services found that requests for information frequently are fulfilled up to two weeks late. The IAA recommends that the financial services unit be eliminated for its ineffectiveness.

C :

A vacation policy compliance review found that employees frequently leave on vacation before their leave applications are signed by their manager. The IAA recommends that the manager attend to the leave applications in a more timely fashion.

D :

A review of customer service-level agreements found that orders to several customers are frequently delivered late. The IAA recommends that the organization extend the expected delivery time advertised on its website.

Answer: A

Question 3

Which of the following is the primary reason for internal auditors to conduct interim communications with management of the area under review?

Options :

A : To demonstrate good project oversight

B : To provide timely discussion of results

C : To demonstrate internal auditor proficiency

D : To follow up on previously requested information

Answer: B

Question 4

Which of the following best illustrates the primary focus of a risk-based approach to control self-assessment?

Options :

A : To evaluate controls regarding the computer security of an oil refinery.

B : To examine the processes involved in exploring, developing, and operating a gold mine.

C : To assess the likelihood and impact of events associated with operating a finished goods warehouse.

D : To link a financial institution-s business objectives to a work unit responsible for the associated risk.

Answer: D

Question 5

Senior management wants assurance that third-party contractors are following procedures as agreed with the organization. Which type of audit would be most appropriate to achieve this objective?

Options :

A : A compliance audit.

B : A due diligence audit.

C : A financial audit.

D : An external audit.

Answer: A

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