Question 1

When establishing a quality assurance and improvement program, the chief audit executive should ensure the program is designed to accomplish which of the following objectives?1. Add value.2. Improve operations.3. Provide assurance that the internal audit activity conforms with the Standards.4. Provide assurance that the internal audit activity conforms with the IIA Code of Ethics.

Options :

A : 1 only

B : 1 and 2 only

C : 1 and 3 only

D : 1, 2, 3, and 4

Answer: D

Question 2

Which of the following is a characteristic of just-in-time inventory management systems?

Options :

A : Users determine the optimal level of safety stocks.

B : They are applicable only to large organizations.

C : They do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.

D : They rely heavily on high quality materials.

Answer: D

Question 3

According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?

Options :

A : The organization-s audit universe is extensive and diverse.

B : There has been an increase in unanticipated requests for advisory work.

C : Previous work provided by the external service provider has been of great quality and value.

D : A recent benchmarking study found that using external service providers is a common practice of similarly-sized IAAs in other organizations.

Answer: B

Question 4

Which of the following is an example of a risk management avoidance response?

Options :

A : Exiting a marketplace.

B : Recalling a product.

C : Obtaining product insurance.

D : Outsourcing production.

Answer: A

Question 5

Which of the following is an example of a risk avoidance strategy?

Options :

A : Hedging against exchange rate variations.

B : Limiting access to an organization-s data center.

C : Selling a nonstrategic business unit.

D : Outsourcing a high-risk activity.

Answer: C

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