Question 1

An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system. Which function, if previously performed by this employee, would represent a conflict of interest?

Options :

A : Monitoring the allowance for doubtful accounts.

B : Writing procedures for the handling of duplicate payments.

C : Signing timekeeping cards for subordinates.

D : Reviewing shipping documents for accuracy.

Answer: B

Question 2

Which of the following principles of The IIA's Code of Ethics implies that internal auditors should refrain from performing assurance services when there is an impairment to audit independence that has not been declared?

Options :

A : Confidentiality.

B : Objectivity.

C : Integrity.

D : Competency..

Answer: B

Question 3

According to IIA guidance, a new internal auditor is expected to possess which of the following competencies?

Options :

A : Technical industry-specific expertise.

B : Expertise in cybersecurity, an area of increasing risk.

C : Knowledge of IT risks and controls.

D : Knowledge of forensic accounting.

Answer: C

Question 4

A newly appointed chief audit executive (CAE) started analyzing the organization’s policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwide practices is most likely to be acceptable to the CAE?

Options :

A : Internal auditors’ performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits.

B : Standard training for each employee, including internal auditors, is 10 hours per year.

C : To enhance efficiency, internal auditors should not be rotated regularly among engagements.

D : Hiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.

Answer: D

Question 5

Which of the following is true regarding risk analysis?

Options :

A : Impact and likelihood should be assessed together.

B : Impact and likelihood should be given equal consideration by the internal auditor.

C : Impact and likelihood should be measured using quantitative methods.

D : Impact and likelihood should be used to determine risk response.

Answer: A

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