Question 1

According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

Options :

A : Communication of any internal ethics violations to external parties may occur with appropriate safeguards.

B : Cultural impacts are less critical where the organization practices uniform polices around the globe.

C : Cross-cultural differences should always be handled by the staff of the same cultural background.

D : Local law enforcement should be involved as they are more familiar with the applicable local laws.

Answer: A

Question 2

An internal auditor is conducting an initial risk assessment of an audit area and wants to assess management's compliance with privacy laws for safeguarding customer information stored on the organization's servers. Which course of action is appropriate for this phase of the engagement?

Options :

A : Solicit the services of a specialist information systems auditor

B : Obtain the most current approved copies of the organization-s privacy policy

C : Consult with legal counsel about new privacy laws to establish appropriate criteria

D : Consider the detection risk of noncompliance with the laws

Answer: B

Question 3

An internal auditor used a risk and control matrix to prepare a work program for testing a software release.During the engagement planning stage, he tested the design ofthe release procedure as a key control and concluded that the control was not designed well. During theperformance stage, he tested the operation of this control andconcluded that it was implemented as designed. Which of the following statements is true regarding thisscenario?

Options :

A : The test of the control design should have occurred at the performance stage.

B : The test of the operating effectiveness of the control was not necessary.

C : A risk and control matrix is not appropriate for this type of engagement.

D : The test of the operating effectiveness of the control should have occurred at the planning stage.

Answer: B

Question 4

An internal auditor is planning a consuming engagement and the objective is to identify opportunities to improve the efficiency of the organization’s procurement process. The auditor is preparing to conduct a preliminary survey of the area. Which of the following approaches would be most useful to obtain relevant information to support the engagement objective?

Options :

A : Complete a transaction walkthrough fiat focuses on the design and operation of financial reporting controls

B : Conduct interviews with senior management to obtain their input and insights regarding operational controls.

C : Perform a comprehensive review of the organization s existing policies and standard operating procedures.

D : Review the procurement process map w*h employees who carry out key activities to obtain their input and insights.

Answer: D

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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