Question 1

The chief audit executive (CAE) wants to ensure that there are sufficient resources available to fulfill the responsibilities of the internal audit activity in the coming year. Which statement describes the most logical sequence of events for the CAE to undertake in order to achieve this objective?

Options :

A : Confirm audit plan; confirm budget; review existing resources; identify outstanding resource requirements.

B : Review prior year audit plan; review existing resources; confirm new audit plan; confirm budget.

C : Confirm budget; review existing resources; obtain any new resources required; confirm new audit plan.

D : Review results of prior year audit plan; adjust current plan accordingly; hire required resources; confirm budget.

Answer: A

Question 2

According to IIA guidance, which of the following is true with regard to the internal audit charter?

Options :

A : It specifies the minimum resources needed for assurance engagements.

B : It requires final approval from senior management.

C : It defines the internal audit activity’s authority and responsibilities.

D : It describes the expectations for communicating the results of a quality assurance and improvement program.

Answer: D

Question 3

According to IIA guidance, which of the following is an appropriate role for the internal audit activity?

Options :

A : Coaching management in responding to risks.

B : Implementing risk responses on management-s behalf.

C : Imposing risk management processes.

D : Setting the risk appetite.

Answer: A

Question 4

Which of the following are appropriate ways to obtain continuous professional education?1. Instructing at a local IIA training event.2. Attending internal audit conferences and seminars.3. Practicing specialized audit and consulting work.4. Participating in research projects in internal auditing.

Options :

A : 1 and 3 only

B : 1 and 2 only

C : 3 and 4 only

D : 1, 2, and 4 only

Answer: D

Question 5

An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.Upon being informed, the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.Which course of action should the CAE follow?

Options :

A : Report the communication to the organization-s general counsel.

B : Report the instruction to the chairperson of the audit committee.

C : Inform the head of the organization that the investigation will continue as planned.

D : Inform the external auditors of the findings and the mandate to stop investigating.

Answer: B

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