Question 1

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 2

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

Question 3

According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?

1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.

2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.

3. The application of technology-based audit and other data analysis techniques, where appropriate.

4. The relative complexity and extent of work needed to achieve the engagement's objectives.

Options :

A : 1, 2, and 3

B : 1, 2, and 4

C : 1, 3, and 4

D : 2, 3, and 4

Answer: B

Question 4

According to The IIA's Code of Ethics, which of the following statements is true?

Options :

A : When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.

B : When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.

C : When an internal auditor disagrees with the treatment received by workers in the organization-s foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.

D : When an internal auditor continues with an audit engagement, despite the audit client-s claims that the work performed is unnecessary and redundant he fails to demonstrate competency.

Answer: C

Question 5

According to the COSO enterprise risk management framework, which of the following best describes the activity that helps ensure risk responses are carried out effectively?

Options :

A : Objective setting.

B : Information and communication.

C : Information and communication.

D : Event identification.

Answer: B

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