Question 1

Which of the following is a purpose of an embedded audit module?

Options :

A : It enables continuous monitoring of transaction processing.

B : It identifies program code that may have been inserted for unauthorized purposes.

C : It verifies the correctness of account balances on a master file.

Answer: A

Question 2

When hiring entry-level internal audit staff, which of the following will most likely predict the applicant's success as an auditor?

Options :

A : A.Grade point average on college accounting courses

B : C.Ability to organize and express thoughts well

C : B.Ability to fit well socially into a group

D : D.Level of detailed knowledge of the company

Answer: B

Question 3

When evaluating the independence of an internal audit activity, a quality assurance review team performing an external assessment considers several factors. Which of the following factors has the least amount of influence when judging an internal audit activity’s independence?

Options :

A : Impartial and unbiased judgments.

B : The extent of internal auditor training in communications skills.

C : Criteria used in making internal auditors’ assignments.

D : Relationship between engagement records and engagement communications.

Answer: B

Question 4

Which of the following statements about conflict of interest is false?

Options :

A : A conflict of interest could impair an individual’s ability to perform his or her duties and responsibilities objectively.

B : A conflict of interest is a situation in which an internal auditor has a competing professional or personal interest.

C : A conflict of interest can create an appearance of impropriety that can undermine confidence in the internal auditor.

D : A conflict of interest only exists when the internal auditor displays unethical behavior or engages in improper acts.

Answer: D

Question 5

In an operational audit, the internal auditors discovered an increase in absenteeism. Accordingly, the chief audit executive decided to identify information about workforce morale. To achieve this engagement objective, the internal auditors must understand that

Options :

A : Morale cannot be reliably analyzed.

B : Morale is always proportional to compensation.

C : Only outcomes that are directly quantifiable can be reliably analyzed.

D : Reliable information may be obtained about morale factors such as job satisfaction.

Answer: D

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