Question 1

To effectively communicate the acceptance of risk in an organization a chief audit executive must first consider which of the following?

Options :

A : The organization-s view on risk tolerance

B : The organization-s principal risk events.

C : The organization-s risk response strategies

D : The organization-s major control activities

Answer: A

Question 2

An internal auditor discovered that sales contracts with business clients were not stored in the electronic document management database instead they were scanned and saved in a nonsystematic manner to server folders Which of the following would be an appropriate consequence for the internal auditor to include in the documented observation?

Options :

A : The document management policy requires business client data to be stored in a specific management database

B : Sales contracts were stored improperly because the office manager was not trained to use the electronic database and prefers to avoid it

C : if the organization becomes subject to litigation the agreed pricing terms and conditions of the contracts may be difficult to prove

D : All staff should be appropriately trained and required to follow the organization-s established policies and procedures pertaining to document management

Answer: C

Question 3

While conducting an information security audit, an internal auditor learns that the existing disaster recovery plan is four years old and untested. The auditor also learns that in the four years since the recovery plan was implemented, the information systems have undergone extensive changes. Which of the following actions is most appropriate for the auditor to take?

Options :

A : Inform management and request that the plan be tested immediately.

B : Update the recovery plan for management, as part of the review.

C : Evaluate the recovery plan and report weaknesses to management.

D : Recommend that management and users update and test the recovery plan.

Answer: D

Question 4

An internal audit activity has to confirm the validity of the activities reported by a grantee that received a charitable contribution from the organization. Which of the following methods would best help meet this objective?

Options :

A : Visiting the grantee to assess whether the execution of the project was in line with the defined grant scope.

B : Verifying that the grantee-s final report is in line with what was depicted in the initial budget request.

C : Reconciling general ledger accounts used by management of the area under review for reflecting expenses on charitable contributions.

D : Interviewing employees of the corporate affairs department, which is responsible for charitable activities.

Answer: A

Question 5

An internal auditor is preparing an internal control questionnaire for the procurement department as part of a preliminary survey. Which of the following would provide the best source of information for questions?

Options :

A : A relevant procurement law or regulation.

B : A list of the company-s vendors.

C : A review of a sample of tenders during the audited period.

D : A summary of the company-s expenditures and their categories.

Answer: A

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