Question 1

Which of the following is a disadvantage of using flowcharts during a risk assessment?

Options :

A : People cannot quickly understand the processes via flowcharts

B : Flowcharts are not applicable for evaluating the design of controls

C : Some serious risks that are not part of the linear process can be missed

D : Flowcharts do not enable auditors to identify missing controls

Answer: C

Question 2

An internal auditor used a risk and control matrix to prepare a work program for testing a software release.

During the engagement planning stage, he tested the design of

the release procedure as a key control and concluded that the control was not designed well. During the

performance stage, he tested the operation of this control and

concluded that it was implemented as designed. Which of the following statements is true regarding this

scenario?

Options :

A : The test of the control design should have occurred at the performance stage.

B : The test of the operating effectiveness of the control was not necessary.

C : A risk and control matrix is not appropriate for this type of engagement.

D : The test of the operating effectiveness of the control should have occurred at the planning stage.

Answer: B

Question 3

An internal auditor discovered that sales contracts with business clients were not stored in the electronic document management database instead they were scanned and saved in a nonsystematic manner to server folders Which of the following would be an appropriate consequence for the internal auditor to include in the documented observation?

Options :

A :

The document management policy requires business client data to be stored in a specific management database

B :

Sales contracts were stored improperly because the office manager was not trained to use the electronic database and prefers to avoid it

C :

if the organization becomes subject to litigation the agreed pricing terms and conditions of the contracts may be difficult to prove

D :

All staff should be appropriately trained and required to follow the organization-s established policies and procedures pertaining to document management

Answer: C

Question 4

An internal auditor is planning a consuming engagement and the objective is to identify opportunities to improve the efficiency of the organization’s procurement process. The auditor is preparing to conduct a preliminary survey of the area. Which of the following approaches would be most useful to obtain relevant information to support the engagement objective?

Options :

A :

Complete a transaction walkthrough fiat focuses on the design and operation of financial reporting controls

B :

Conduct interviews with senior management to obtain their input and insights regarding operational controls.

C :

Perform a comprehensive review of the organization s existing policies and standard operating procedures.

D :

Review the procurement process map w*h employees who carry out key activities to obtain their input and insights.

Answer: D

Question 5

Which of the following is the next step in understanding a business process once an internal auditor has identified the process?

Options :

A : Determine process outputs.

B : Determine process inputs.

C : Determine process activities.

D : Determine process goals.

Answer: D

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