Question 1

Which of the following is a primary reason for an internal auditor to use a risk and control questionnaire when auditing financial processes?

Options :

A : To gam an understanding of the control environment

B : To collect as much financial data as possible before engagement fieldwork begins.

C : To test the effectiveness of financial controls in an efficient and relatively inexpensive way

D : To facilitate the quantification of financial data obtained

Answer: A

Question 2

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

Question 3

An organization has a health and safety division that conducts audits to meet regulatory requirements. The chief health and safety officer reports directly to the CEO. Which of the following describes an appropriate role for the chief audit executive (CAE) with regard to the organization's health and safety program?

Options :

A : The CAE has no role to play, because the chief health and safety officer reports to a senior executive.

B : The CAE should coordinate with, and review the work of, the chief health and safety officer to gain an understanding of whether risks related to health and safety are managed properly.

C : The CAE should give periodic reports directly to the regulator regarding health and safety issues, as it is the appropriate regulatory oversight body.

D : The CAE should hire an independent external specialist to conduct an annual assessment and provide assurance over the effectiveness of the health and safety program and the reliability of its reports.

Answer: B

Question 4

An internal auditor using the five-attribute approach to document deficiencies in a warehouse shipping process. Which of the following attributes will be included in the workpapers?

Options :

A : Risk, impact likelihood existing control, recommendation

B : Condition, cause, effect, recommendation

C : Condition, cause effect test result

D : Risk, impact test result recommendation

Answer: B

Question 5

Which of the following is a disadvantage of using flowcharts during a risk assessment?

Options :

A : People cannot quickly understand the processes via flowcharts

B : Flowcharts are not applicable for evaluating the design of controls

C : Some serious risks that are not part of the linear process can be missed

D : Flowcharts do not enable auditors to identify missing controls

Answer: C

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