Question 1

According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

Options :

A : To enable Triple Bottom Line reporting capability.

B : To facilitate the conduct of risk assessment.

C : To achieve and maintain sustainable development.

D : To fulfill regulatory and compliance requirements.

Answer: C

Question 2

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

Options :

A :

Appoint the CAE as a member of the board.

B : Move the CAE-s functional reporting to an executive who is not on the board.

C : Obtain full board approval of the internal audit activity-s annual audit plan.

D : Move the CAE-s functional reporting to the audit committee.

Answer: D

Question 3

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 4

Which of the following conditions is the most likely indicator of fraud?

Options :

A : Commissions are paid based on verified increases to sales.

B : Departmental reports are consistently issued in an untimely manner.

C : A manager regularly assumes subordinates' duties.

D : Lower earnings occur during the industry-s down cycle.

Answer: C

Question 5

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

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