Question 1

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 2

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 3

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 4

An internal auditor was assigned to review controls in the accounts payable function. Most of tie accounts payable processes are performed by a third-party service provider. The auditor included in the audit report a number of control deficiencies involving processes performed by the service provider. The service provider requested a copy of the report Which of Vie following would be the most appropriate response from the chief audit executive (CAE)?

Options :

A : The CAE would automatically sand a copy of the report to the service provider as many of the findings relate to Via area managed by the service provider

B : The CAE may distribute the report to tie service provider at no cost, after consulting with legal counsel and tie chief compliance officer

C : The CAE may provide a copy of the audit report to the service provider If an agreement & signed and the service provider agrees to reimburse the cost of the audit

D : D, The CAE should benchmark with other organization in the industry by consorting with colleagues and distribute the report only I it is an acceptable practice m the industry

Answer: B

Question 5

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

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