Question 1

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 2

Which of the following would be considered a preventive control?

Options :

A : A library control log.

B : A review of exception reports.

C : A password lock on a server.

D : A software scan of financial records for irregularities.

Answer: C

Question 3

Which of the following actions would be characterized as a preventive control to safeguard inventory from the risk of theft?

1. Locking doors and physically securing inventory items.

2. Independently observing the receipt of materials.

3. Conducting monthly inventory counts.

4. Requiring the use of employee ID badges at all times.

Options :

A : 1 and 3.

B : 1 and 4.

C : 2 and 3.

D : 2 and 4.

Answer: B

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

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

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