Question 1

Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?

Options :

A : The CAE initials and dates every working paper after it has been reviewed.

B : The CAE completes an engagement working paper checklist.

C : The CAE prepares a memorandum discussing the results of the working paper review.

D : The CAE utilizes an external third party to make an objective recommendation after each working paper review.

Answer: D

Question 2

Which of the following is not an appropriate activity for internal auditors to perform?

Options :

A : Recommend management seek a consulting firm to advise on outsourcing.

B : Highlight matters that require management-s attention.

C : Implement solutions for specific organizational problems.

D : Accumulate data, obtain varying views, and report information to senior management.

Answer: C

Question 3

While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?

Options :

A : Proceed with the audit engagement, but do not include the relative-s information.

B : Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

C : Disclose in the engagement final communication that the relative is a customer.

D : Immediately withdraw from the audit engagement.

Answer: D

Question 4

During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report. Which of the following is especially important in dealing with this type of situation?

Options :

A : Soft skills in communication, negotiation, and collaboration.

B : Technical skills in the area under review.

C : Professional qualifications and certification in internal auditing.

D : Confidentiality and independence.

Answer: A

Question 5

Non-statistical sampling does not require which of the following?

Options :

A : The sample to be representative of the population.

B : The sample to be selected haphazardly.

C : A smaller sample size than if selected using statistical sampling.

D : Projecting the results to the population.

Answer: C

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