EMT Practice Test

1. Question Content...

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Question1: The internal audit activity is undergoing a self-assessment as part of its quality assurance and improvement program Which of the following observations must be addressed in order for the internal audit activity to achieve conformance with the Standards?

Question2: Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?

Question3: Which of the following situations undermines the independence of the internal audit activity?

Question4: Which of the following statements is true regarding control activities'?

Question5: Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

Question6: During the audit of taxation processes in the organization internal auditors have verified that all employees of the finance department received training on taxation guidelines. The training is mandatory and is automatically assigned via email invitation to all new employees in the department Which type of controls have the auditors tested?

Question7: An internal auditor extended the scope of testing for a disbursements engagement following a fraud risk assessment Despite the investment of additional audit resources no significant issues were found Unfortunately a major payment fraud was discovered several months later According to IIA guidance which of the following statements is true regarding the internal auditor's application of due professional care?

Question8: An organization's board recommends revising the internal audit charter by adding requirements regarding the hiring and compensation of the chief audit executive as well as information on approving the internal audit budget. Which of the following is the board most likely defining in the charter?

Question9: An external assessment of an organization's internal audit activity was last completed four years ago Which of the following options would be acceptable this year if the internal audit activity is to fulfill the requirements of the Standards?

Question10: Which of the following would be the best choice for a continuing professional development requirement for a newly created internal audit activity?

Question11: Which of the following statements relating to risk management is true?

Question12: Which of the following is the most appropriate reason for a chief audit executive to conduct an external assessment more frequently than five years?

Question13: According to NA guidance, which of the following provides the best evidence of conformance with the Standards with respect to the proficiency required of the internal audit activity?

Question14: Which of the following specifications in an internal audit charter is the most important factor in the internal audit activity's independence?

Question15: When issuing his department's performance report, a sales director in an insurance company knowingly fails to correct the reserves for unearned income that resulted from cancellations of policy subscriptions. This could be considered which of the following types of fraud?

Question16: When a plant manager from within the organization is hired as a rotational internal auditor within the internal audit activity which area should he most likely be trained for immediately?

Question17: Which of the following is the primary engagement responsibility of an entry-level internal auditor?

Question18: According to The IIA's Code of Ethics, which of the following scenarios offers the best example of violating the principle of integrity?

Question19: According to IIA guidance, which of the following threats to objectivity is described as familiarity'?

Question20: Which of the following would be considered advanced expertise which most internal auditors are not expected to possess'?

Question21: Which of the following is a consulting service the internal audit activity can perform with respect to the organization's risk management'?

Question22: During a complex financial compliance engagement, a senior internal auditor determines that current audit procedures are not sufficient for adequate testing She consults with a colleague and learns that a spreadsheet application contains a helpful tool She proceeds to use the tool to properly complete the evaluation Which of the following best describes the core competency displayed by the senior auditor?

Question23: An automobile manufacturer will become one of the first in the industry to adopt a new inventory management software. Despite the system being new to the market, senior management believes that the benefits are great enough to offset the potential risks. Which of the following aspects of risk management does senior management's decision best illustrate?

Question24: Which of the following best describes the risk created when a manager bypasses organizational policies and procedures in order to meet an organization's objective?

Question25: Which of the following can be used to minimize employees' resentment of controls?

Question26: A multinational organization has asked the internal audit activity to assist in setting up the organization's risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?

Question27: An internal audit activity uses a rotational program to recruit high-performing staff members from other parts of the organization One of these individuals is nearing the end of her four-year internal audit rotation The chief audit executive assigned her to an assurance engagement in the business area she will be going into when she leaves the internal audit activity Which of the following statements is true regarding this scenario?

Question28: Which of the following situations undermines the independence of the internal audit activity?

Question29: Why is it imperative for the chief audit executive to track and develop the educational qualifications of internal audit staff?

Question30: Which of the following describes two duties that should not be performed by the same person?

Question31: Which of the following is the best way for internal auditors to demonstrate their proficiency to effectively carry out their professional responsibilities?

Question32: Which of the following must be in existence as a precondition to developing an effective system of internal controls?

Question33: In which scenario might it be considered problematic for the chief audit executive (CAE) to provide assurance services over the payroll function?

Question34: Outsourcing a business activity is considered which of the following risk management techniques?

Question35: Which of the following should be implemented to promote independence of the internal audit activity?

Question36: Which of the following is most likely to be considered a control weakness?

Question37: The organization's internal audit charter was last updated six years ago. To update the charter, which of the following actions is most appropriate for the chief audit executive to take?

Question38: When dealing with various stakeholders which of the following is true regarding an internal auditor's responsibility to remain objective and independent?

Question39: According to IIA guidance, which of the following best describes the chief audit executive s responsibility for confirming to the board the organizational independence of the internal audit activity'?

Question40: Which of the following is a primary responsibility of senior management with respect to ethical violations?

Question41: According to IIA guidance, which of the following would the internal audit activity examine in order to evaluate the organization's governance process for strategic and operational decisions'?

Question42: An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing ( Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations.
According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?

Question43: Which of the following corporate social responsibility strategies is associated with responding to outside pressure by assuming additional responsibility?

Question44: Which of the following best describes the differences between internal auditors and external auditors?

Question45: An internal auditor has completed an assurance engagement Which of the following is most likely true regarding the engagement?

Question46: Applying ISO 31000, which of the following is part of the external context for risk management?

Question47: A chief audit executive (CAE) is considering hiring a candidate who most recently worked for a large public accounting firm What would be the CAE's most likely concern regarding this candidate*?

Question48: With regard To IT governance, which of the following is the most effective and appropriate role for the internal audit activity?

Question49: According to IIA guidance, which of the following actions is a chief audit executive required to take with regard to reporting the results of the quality assurance and improvement program?

Question50: The internal audit activity audited an organization's risk management function multiple times, and the recommendations that were made remain unaddressed by the head of risk management. Which of the following would be the next step for the internal audit activity?

Question51: If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?

Question52: Which of the following is a true statement regarding controls such as ethical values, tone at the top and operational style?

Question53: Upon completion of an external quality assessment, which of the following would the chief audit executive be required to report to the board?

Question54: Which of the following best demonstrates that the internal audit activity is using due professional care?

Question55: To assure that the technical proficiency of internal auditors is appropriate for the audit engagements to be performed, a chief audit executive should:

Question56: In an assurance engagement focused on the adequacy of organizationwide risk management practices, which of the following best describes a primary area of interest for the engagement?

Question57: Which of the following best demonstrates internal auditors performing their work with proficiency?

Question58: An auditor for a large wholesaler is evaluating the controls over the approval and oversight of credit sales. Which of the following procedures would be a control weakness?

Question59: According to IIA guidance, which of the following is required of an internal audit activity?

Question60: Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

Question61: Which of the following parties would be responsible for ongoing monitoring of the organization's corporate social responsibility activities to reduce its carbon footprint?

Question62: During an assurance engagement, an internal auditor uses benchmarking research to support preparation of a report to stakeholders that contains significant findings about control deficiencies. Which of the following skills did the auditor demonstrate?

Question63: An engagement supervisor noticed that a newly hired internal auditor struggles with large data samples because he appears reluctant to apply available spreadsheet statistical functions and tends to perform testing of transactions manually In which of the following areas does the internal auditor most likely need training?

Question64: The internal audit activity completed its analysis of sample transactions to determine occurrences of double billings According to If A guidance, which of the following best demonstrates that internal auditors exercised due professional care during the review?

Question65: Which of the following types of fraud tests would be most effective if an internal auditor was looking for possible fictitious vendors?

Question66: According to IIA guidance, which of the following actions best demonstrates due professional care by an internal auditor when she discovers a number of fraud-related red flags during an audit engagement?

Question67: Which of the following is an example of a detective control?

Question68: During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor's compensation. Which of the following would encourage the internal auditor to be objective in his work?

Question69: According to IIA guidance, which of the following best demonstrates how the chief audit executive may ensure that due professional care is applied?

Question70: An accounts payable clerk has recently transferred into the internal audit activity and has been assigned to an engagement related to accounts payable processes for which he was previously responsible. Which of the following is the best action for the new internal auditor to take?

Question71: According to IIA guidance, which of the following is true of the internal audit activity's quality assurance and improvement program?
1 Monitoring the internal audit activity's performance must be ongoing
2 All aspects of the internal audit activity should be evaluated
3 The requirement for external assessments can be satisfied through self-assessments that are validated by an independent external party
4 The review of assurance services should be the primary focus

Question72: 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?

Question73: In a small organization, management is unable to achieve adequate segregation of duties for its cash-handling procedures Therefore hidden surveillance cameras were installed to monitor cash-handling activities Which of the following best describes this type of control?

Question74: According to IIA guidance, which of the following is most critical to ensuring that an organization's risk management program remains effective over time?

Question75: According to IIA guidance, which of the following statements is true regarding the internal audit activity's responsibilities in providing consulting services?

Question76: Which of the following best demonstrates conformance with IIA standards related to continuing professional development?

Question77: The chief audit executive (CAE) of a large organization has been asked by the board to assume responsibility for risk management and compliance operations, both of which are distinct departments within the organization and are subject to periodic audits by the internal audit activity In regards to future audits of these functions which of the following approaches would be most appropriate?

Question78: Which of the following best describes organizational governance processes?

Question79: Senior management has requested that the internal audit activity review and amend policies where necessary when auditing the purchasing department. To which of the following would the chief audit executive most likely give primary consideration when responding to this request?

Question80: During a payroll audit, the internal auditor discovered that several individuals who have the same position classification as he are earning a significantly higher salary. The auditor noted the names and amounts of each, and he planned to prepare a request to the chief audit executive for a salary increase based on this information. Which of the following IIA Code of Ethics principles was violated in this scenario?

Question81: A global organization established a new internal audit activity and the recently hired chief audit executive needs to develop an internal audit manual for internal auditors Among the following policies in the manual, which would facilitate internal auditors in upholding their objectivity?

Question82: An internal auditor has suspicions that some fictitious vendors have been created in the organization's computer system. Which of the following would be the best technique to detect this fraud?

Question83: The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently.
Which common characteristics of fraud will the practice and policy most likely reduce?

Question84: According to IIA guidance, which of the following statements is true regarding ISO 31000?

Question85: According to IIA guidance, which of the following actions by the chief audit executive (CAE) best demonstrates the organizational independence of the internal audit activity?

Question86: Which of the following is an example of a risk avoidance strategy?

Question87: Which of the following best demonstrates conformance with the Standards regarding the internal audit activity's purpose authority, and responsibility?

Question88: A new company's risk management function is developing its cybersecurity risk management program Which of the following actions should be the first priority when developing the program?

Question89: Which of the following strategies for professional development best demonstrates an internal auditor's competency'?

Question90: What should the chief audit executive do when the internal audit activity is found to be in nonconformance with the Code of Ethics or the Standards?

Question91: According to NA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?

Question92: Which of the following statements would typically be included in the responsibility section of the internal audit charter?

Question93: According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?

Question94: The internal audit activity is responsible for which of the following actions related to an organization's internal controls?

Question95: Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?

Question96: An internal auditor performed a risk assessment and concluded that the controls over access privileges to a bank account were appropriate. Later, the auditor learned that a contractor was using a shared password provided by an authorized user of the account. Which of the following statements best describes the auditor's application of due professional care?

Question97: Which requirement should the chief audit executive consider when communicating results of the quality assurance and improvement program to the board of a large organization?

Question98: Which of the following best describes why a chief audit executive might obtain the services of a fraud specialist to assist in a major fraud investigation'?

Question99: Guidelines need to be set for various levels of suspected fraud within an organization and when it would be reported to the audit committee. Which of the following would be reported at the next meeting?

Question100: According to the 11A Code of Ethics, which of the following is required with regard to communicating results?

Question101: Which of the following most accurately describes the role of the board when it comes to organizational governance?

Question102: An internal auditor is providing consulting services on an area he was responsible for three years ago. Part of the consulting scope covers a review of a performance measuring system that the auditor helped to develop. What is the best course of action for the auditor to take concerning the consulting service?

Question103: Which of the following would be considered a violation of The HAfs mandatory guidance on independence?