Question 1

What is the primary reason that audit supervision includes approval of the engagement report?

Options :

A : To ensure the objectives of the area under review are met.

B : To ensure senior management supports the report-s conclusions.

C : To ensure report style and grammar are appropriate.

D : To ensure report findings are substantiated.

Answer: D

Question 2

Which of the following recommendations made by the internal audit activity (IAA) is most likely to help prevent fraud?

Options :

A : A review of password policy compliance found that employees frequently use the same password more than once during a year. The IAA recommends that the access control software reject any password used more than once during a 12-month period.

B : A review of internal service-level agreement compliance in financial services found that requests for information frequently are fulfilled up to two weeks late. The IAA recommends that the financial services unit be eliminated for its ineffectiveness.

C : A vacation policy compliance review found that employees frequently leave on vacation before their leave applications are signed by their manager. The IAA recommends that the manager attend to the leave applications in a more timely fashion.

D : A review of customer service-level agreements found that orders to several customers are frequently delivered late. The IAA recommends that the organization extend the expected delivery time advertised on its website.

Answer: A

Question 3

Which of the following best describes external benchmarking using trend analysis for a subsidiary of an international company?

Options :

A : Comparing the current ratio of the subsidiary with the current ratio of another company for the same period

B : Comparing common-size financial statements of the subsidiary with the averages of the industry for the last two periods

C : Comparing the sales of the subsidiary with the sales of another subsidiary for the last two periods.

D : Comparing the sales of the subsidiary with the budgeted figures for the last two periods

Answer: B

Question 4

In a health care organization the internal audit activity provides overall assurance on governance, risk and control The chief audit executive advises and influences senior management, and the audit strategy leverages the organization's management of risk According to HA guidance which of the following stages of internal audit maturity best describes this organization?

Options :

A : Infrastructure.

B : Emerging.

C : Managed.

D : Initial.

Answer: C

Question 5

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

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