Question 1

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

Question 2

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 3

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 4

An examination of the accounts payable function evidenced multiple findings with respect to segregation of duties. After management's response and action plan are received and documented in the final report, which of the following is most appropriate?

Options :

A : Follow up after the applicable changes have been incorporated to validate management’s response.

B : Include the items in the scope of the next scheduled audit of the accounts payable function.

C : Because management agreed with the findings, no further action is deemed necessary.

D : Have an internal audit staff member placed into the accounting department until corrections are made.

Answer: A

Question 5

According to IIA guidance, which of the following best describes the purpose of a planning memorandum for an audit engagement?

Options :

A : It documents the audit steps and procedures to be performed.

B : It documents preliminary information useful to the audit team.

C : It documents events that could hinder the achievement of process objectives.

D : It documents existing measures that manage risks in the area under review.

Answer: B

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