Question 1

During the planning phase of an audit of suspected overbilling on contracts for security services, an auditor should perform all of the following except

Options :

A : Obtaining a copy of the contract between the two organizations.

B : Interviewing an official of the security services company to determine the cause of recent increases in billings for services.

C : Preparing an engagement program.

D : Interviewing the manager who requested the audit engagement.

Answer: B

Question 2

The primary purpose for the chief audit executive's communication of the internal audit activity's plans and resource requirements to senior management and the board is to

Options :

A : Indicate future internal audit staffing needs

B : Identify internal audit engagement scope limitations

C : Highlight the internal audit activity-s view of significant risk areas

D : Ensure that the work of the internal audit activity supports the organization-s objectives

Answer: D

Question 3

The audit committee has raised a few issues that the internal audit activity will examine during an operational audit for the current year. When performing the preliminary survey, which of the following is not an appropriate technique?

Options :

A : A.Performing interviews.

B : C.Determining the largest risk of financial statement misstatement.

C : B.Developing questionnaires.

D : D.All of the answers are appropriate techniques.

Answer: B

Question 4

Which of the following actions is required of the CAE and internal auditors themselves in regard to the objectivity of internal auditors?

Options :

A : Enhance.

B : Promote.

C : Delegate.

D : Maintain.

Answer: D

Question 5

Which of the following documents should the internal auditor examine to determine whether only authorized purchases are being accepted by the receiving department?

Options :

A : D.Policies and procedures for the receiving function.

B : B.A copy of the purchase order.

C : A.A bill of lading.

D : C.An invoice.

Answer: B

Confidently Practice Online with Free IIA-IAP Exam Cram

Buying Options: