Question 1

Which of the following is least likely to help ensure that risk is considered in a work program?

Options :

A : Risks are discussed with audit client.

B : All available information from the risk-based plan is used.

C : Client efforts to affect risk management are considered.

D : Prior risk assessments are considered.

Answer: A

Question 2

If observed during fieldwork by an internal auditor, which of the following activities is least important to communicate formally to the chief audit executive?

Options :

A : Acts that may endanger the health or safety of individuals.

B : Acts that favor one party to the detriment of another.

C : Acts that damage or have an adverse effect on the environment.

D : Acts that conceal inappropriate activities in the organization.

Answer: B

Question 3

Which of the following is the primary reason for internal auditors to conduct interim communications with management of the area under review?

Options :

A : To demonstrate good project oversight

B : To provide timely discussion of results

C : To demonstrate internal auditor proficiency

D : To follow up on previously requested information

Answer: B

Question 4

Senior IT management requests the internal audit activity to perform an audit of a complex IT area. The chief audit executive (CAE) knows that the internal audit activity lacks the expertise to perform the engagement. Which of the following is the most appropriate action for the CAE to take?

Options :

A : Decline the audit engagement, because the Standards prohibit internal auditors from performing engagements where they lack the necessary competencies.

B : Accept the audit engagement and use the engagement as an opportunity to develop the audit team-s IT expertise while performing the audit work.

C : Temporarily hire an experienced and knowledgeable IT analyst from the organization-s IT department to lead the audit.

D : Outsource the audit engagement to a reputable IT audit consulting firm.

Answer: D

Question 5

During a review of the treasury function an internal auditor identified a risk that all bank accounts may net to include in the daily reconciliation process. Which of the following responses would be most effective to mitigate this risk?

Options :

A : The treasury supervisor establishes a threshold for amounts on bank statements to be reconciled against data in the system

B : The treasury analyst performs a daily reconciliation of al bank statements obtained via email against data in the system

C : The treasury analyst reviews a daily report automatically generated by the treasury system, which shows bank statements that have not been uploaded into the accounting system.

D : The treasury supervisor seeks an annual confirmation from the bank regarding the bank statements processed within a year

Answer: C

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