Question 1

What conclusion can be reached by comparing a random sample of vendor invoices to purchase orders?

Options :

A : No duplicate invoices were received.

B : No duplicate payments were made.

C : Invoices were for authorized purchases.

D : Authorized invoices were paid.

Answer: C

Question 2

When conducting a preliminary survey, which of the following audit activities should an internal auditor complete first?

Options :

A : Identify risks and controls intended to prevent associated losses.

B : Write detailed audit procedures.

C : Identify client objectives, goals, and standards.

D : Determine relevant engagement objectives.

Answer: C

Question 3

Which of the following is a consulting service the internal audit activity can perform with respect to the organization’s risk management?

Options :

A : Delivering assurance on the risk management system.

B : Facilitating risk assessment workshops.

C : Evaluating principal risk reporting.

D : Deciding on the appropriate risk response.

Answer: B

Question 4

This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline.Which of the following would be the best course of action for the CAE to take?

Options :

A : Continue with the engagement in order to meet the regulatory deadline, but highlight areas in the final report that might need to be revised in the future.

B : Ask that a senior member of the organization-s IT department with the required systems expertise join the audit team to assist in completing the engagement

C : Delay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement

D : Remove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the

Answer: C

Question 5

An internal auditor, when planning the tests for an assurance engagement, noted certain aspects in the area under review where he believes that he can add significant value, though they have not been included within the approved scope of the engagement. What should he do?

Options :

A : Review the areas and present findings as value-added points in the audit report.

B : Discuss with the chief audit executive (CAE) to change the assurance engagement to a consulting engagement.

C : Discuss with the CAE and senior management the opportunities to improve operations in the area.

D : Wait until annual audit planning and propose to the CAE to include it into the following year-s annual audit plan.

Answer: C

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