EMT Practice Test

1. Question Content...

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Question1: Which of the following consulting engagements leverages an internal auditor's risk and control knowledge to help the organization keep abreast of emerging risks?

Question2: Which of the following best describes the purpose of a detailed engagement risk assessment?

Question3: Which of the following statements best describes quality audit workpapers?

Question4: Which of the following is considered an organization-level control, as opposed to process-level or transaction- level?

Question5: During a review of the payroll department, a payroll associate informs the internal auditor, in confidence, that a co-worker is under a great deal of personal stress and has made several uncharacteristic mistakes over the past few weeks. The payroll associate asks the auditor to be sympathetic to the co-worker when drafting the audit findings. If the auditor adjusts the audit findings in consideration of this request, which of the following IIA Code of Ethics principles would be violated?

Question6: Which of the following is an advantage of communicating audit observations as they are identified?

Question7: According to IIA guidance, which of the following are commonly standardized workpaper elements?

Question8: Which of the following conditions would threaten an internal auditor's objectivity?

Question9: Which of the following is an element of a well-formed audit recommendation?

Question10: A senior internal auditor is planning a compliance audit of the organization's global purchasing department.
Which of the following criteria is a relevant consideration for establishing the engagement objectives?

Question11: Which of the following is the most important initial action for a chief audit executive to perform when establishing a new internal audit activity?

Question12: What are the typical elements of a risk and control matrix used in the engagement planning process?

Question13: Information collected and documented in audit workpapers should be sufficient to:

Question14: As part of the annual training plan, the chief audit executive (CAE) has arranged for a local audit training institute to provide an in-house training session for the internal audit team. Which of the following best explains the primary purpose of this approach?

Question15: What is the purpose of establishing engagement objectives during the planning phase of an internal audit?

Question16: Which of the following internal auditor attributes benefits the most from continuous professional development?

Question17: A member of the internal audit team worked eight months ago in an area of the organization that she is now being tasked with auditing. Which of the following would most likely be impacted by her participation in the audit?

Question18: The internal audit activity has been tasked with evaluating the effectiveness of the organization's risk management processes. Which of the following activities are appropriate and relevant to consider in the overall evaluation?

Question19: During engagement planning, which of the following sources would provide the internal auditor with relevant information to obtain an understanding of the process under review?

Question20: Which of the following would an internal auditor most likely use to document a complex process that includes risks and controls, timelines, and ownership of key steps?

Question21: An internal auditor is planning a business continuity audit engagement at a remote manufacturing plant. During planning interviews, the plant manager stated that the local Environmental, Health, and Safety (EHS) Department, which reports to the plant manager, had completed a similar review six months ago. The EHS review did not find any significant weaknesses. How should the internal auditor consider the EHS review results in the current audit engagement planning?

Question22: Internal and external benchmarking by the internal audit activity are examples of which of the following?

Question23: An internal auditor is performing an internal control assessment at a manufacturing company. The auditor observed that the accounts payable clerks have the ability to create new vendors without management's review and approval. How should the auditor document this observation?

Question24: Which of the following activities would compromise the independence of the internal audit activity and therefore should not be performed by an internal auditor?

Question25: When determining the appropriate level of resources needed for an engagement, which of the following would be the first step?

Question26: Which of the following best explains why internal auditors should identify risk scenarios during a risk assessment of the area being audited?

Question27: Which of the following best describes the difference between inherent risk and residual risk?

Question28: An internal auditor is conducting a human resources audit engagement. Which of the following observations would increase the probability of fraud?

Question29: What is the primary objective for testing controls?

Question30: According to The IIA's Code of Ethics, which of the following best illustrates the principle of confidentiality?

Question31: During an accounts payable audit engagement, the internal auditor found that vendor invoices are always paid
30 days after the invoice date, regardless of the vendor's payment terms. The auditor also discovered that accounts payable employees are not comparing vendor invoices received to previous vendor invoices prior to payment. Based on the auditor's observations, what are the potential risks?

Question32: The engagement supervisor is coordinating an audit of investments and needs to select an audit team member to determine the test attributes. Which of the following team members is most appropriate for the engagement supervisor to select?

Question33: Which of the following is a purpose of an embedded audit module?

Question34: Which of the following actions could the chief audit executive take to most directly support the requirement that internal auditors maintain proficiency?

Question35: During which stage of an audit engagement would the engagement supervisor identify the tasks that were already completed and the remaining tasks to be performed?

Question36: If an internal auditor needs to evaluate compliance with an internal control policy, which sampling method is most appropriate?

Question37: Which of the following is the best audit procedure to determine whether all of a bank's loans are backed by sufficient collateral, properly aged as to current payments, and properly categorized as current or noncurrent?

Question38: Which of the following scenarios would be the strongest indicator of fraud in an accounts payable process?

Question39: Which of the following situations is most likely to require a compliance engagement from the internal audit activity?

Question40: Which of the following is the most appropriate audit objective?

Question41: A senior police officer was in charge of the cash fund used for undercover operations. In this situation, which of the following would likely be considered a red flag?

Question42: Which of the following statements is true regarding engagement status meetings?

Question43: An internal auditor was assigned to a payroll process audit engagement. At which stage ofengagement planning would the auditor conduct a risk assessment?

Question44: Which of the following interview techniques would be most effective in a fraud investigation?

Question45: Which of the following is an example of a detective control?

Question46: A senior internal auditor is using a risk and control matrix to facilitate an internal control assessment of the fixed asset accounting process. Which of the following activities would aid the auditor in determining inputs for the risk and control matrix?

Question47: Which sampling technique uses a nonrandom selection process that is expected to be representative of the population as a whole?