Question 1

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 2

According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

Options :

A :

Communication of any internal ethics violations to external parties may occur with appropriate safeguards.

B : Cultural impacts are less critical where the organization practices uniform polices around the globe.

C : Cross-cultural differences should always be handled by the staff of the same cultural background.

D : Local law enforcement should be involved as they are more familiar with the applicable local laws.

Answer: A

Question 3

Following an audit, management developed an action plan to improve controls over the handling of scrap metal. Which of the following would be the most appropriate course of action for the auditor to follow up?

Options :

A :

Conduct another audit engagement to ensure all risks related to the sales of scrap metal have been mitigated.

B : Ensure new procedures have been documented, approved, and distributed to the employees responsible.

C :

Perform retesting to confirm that new procedures address the previously identified deficient control activities

D :

Analyze the new procedures, then report to senior management whether the associated risks have been managed.

Answer: C

Question 4

An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?

Options :

A :