Question 1

According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?

Options :

A : Rating each engagement record to assess its relevance and accessibility for the organization-s board.

B : Controlling access to engagement records, including access by senior management.

C : Developing retention requirements for engagement records that are consistent with organizational guidelines.

D : Forming policies governing the custody and retention of consulting engagement records before their release to other parties.

Answer: A

Question 2

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

Options :

A : Appoint the CAE as a member of the board.

B : Move the CAE-s functional reporting to an executive who is not on the board.

C : Obtain full board approval of the internal audit activity-s annual audit plan.

D : Move the CAE-s functional reporting to the audit committee.

Answer: D

Question 3

Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.2. Experience of the engineer in the type of work being considered.3. Compensation or other incentives that the engineer may receive.4. The extent of other ongoing services that the engineer may be performing for the organization.

Options :

A : 1 and 4 only

B : 2 and 3 only

C : 3 and 4 only

D : 1, 2, and 4 only

Answer: D

Question 4

While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?

Options :

A : Proceed with the audit engagement, but do not include the relative-s information.

B : Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

C : Disclose in the engagement final communication that the relative is a customer.

D : Immediately withdraw from the audit engagement.

Answer: D

Question 5

Which of the following would not be considered part of preliminary survey of an engagement area?

Options :

A : Interviews with individuals affected by the entity.

B : Functional walk through test.

C : Analytical reviews.

D : Sampling scope.

Answer: D

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