EMT Practice Test

1. Question Content...

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Question1: A new internal audit activity is considering the adoption of a risk and control framework. Which of the following is the most appropriate consideration during this process?

Question2: 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?

Question3: Which of the following describes the internal audit activity's most appropriate role in an organization's risk management process?

Question4: Which of the following is an advantage of using nongovernmental organization (NGO) members on an assurance team when auditing corporate social responsibility?

Question5: Due to unfavorable economic conditions management decided to postpone new investments for the next year. Which of the following best describes the risk management strategy used to address this situation?

Question6: Which of the following risk management techniques best describes the strategy of obtaining insurance to protect against losses due to bad weather conditions?

Question7: According to IIA guidance, which of the following should be formally documented in the internal audit charter?

Question8: According to IIA guidance, which of the following activities is appropriate for an internal auditor to perform with regard to the organization's corporate social responsibility (CSR) program?
1. Determine whether the organization has adequate controls to achieve its CSR objectives.
2. Facilitate a management self-assessment of CSR controls and results.
3. Consult on the project design and implementation for the CSR program.
4. Exclude CSR-related external risks that are beyond the control of the organization.

Question9: In the COSO internal control framework, which of the following components serves as the foundation for the other components?

Question10: 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?

Question11: 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?

Question12: Which of the following would be an important aspect of an internal auditor's role in fraud management?

Question13: An internal auditor assessed that the risk of steel theft at a plant is high. In response, the plant's management introduced a number of controls, including fences around the facility, a metal detector at the entrance, and monthly steel inventory counts. If the controls operate as intended, which of the following outcomes would the internal auditor hope to see?

Question14: An internal audit activity is taking steps to promote professional development among the staff, and is in the process of implementing a mentorship program. According to HA guidance, which of the following is important for a successful mentorship program?

Question15: Which of the following is a way to demonstrate an individual internal auditor's competency through continuing professional development?

Question16: 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?

Question17: Which of the following is a greater consideration for internal auditors when they are performing a consulting engagement than when they are performing an assurance engagement'?

Question18: The chief audit executive (CAE) has hired a new internal auditor who was immediately assigned to a procurement function audit. Because the new auditor's name is similar to that of the procurement manager, some staff members think the two are related, although they are not. Which of the following actions is most appropriate for the CAE to take?

Question19: Which of the following best demonstrates the board of directors' governance over internal control?

Question20: According to IIA guidance, which of the following is the most accurate statement regarding the internal audit charter?

Question21: Which of the following must be in existence as a precondition to developing an effective system of internal controls?

Question22: Which of the following techniques should an internal auditor use in order to conduct an effective interview?

Question23: Internal controls belong to which risk response category?

Question24: Upon completion of an external quality assessment, which of the following would the chief audit executive be required to report to the board?

Question25: Which of the following is the primary engagement responsibility of an entry-level internal auditor?

Question26: 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?

Question27: Which of the following demonstrates that the internal audit activity exercises due professional care?

Question28: An engagement supervisor obtains facilities maintenance reports from a contractor during an audit of third-party services. Which of the following is the source of authority for the engagement supervisor to make such contact outside the organization?

Question29: An internal auditor in a busy internal audit activity reviews her continuing professional development records toward the end of the year and is concerned to find she has undertaken limited training and formal professional development. Which of the following actions is the most appropriate for her to take?

Question30: Which of the following statements is most likely to be true regarding a consulting engagement involving an organization's new payroll system?

Question31: An internal auditor discovered fraud while performing an audit of an organization's procurement process. Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?

Question32: In which of the following scenarios is the internal auditor in conformance with The IIA's Code of Ethics and the Standards?

Question33: Which action by senior management indicates to the internal auditor that there may be fraudulent activities occurring within the organization?

Question34: In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?

Question35: Which of the following documents would promote objectivity within an organization's internal audit activity?

Question36: Who is responsible for ensuring internal auditors' continuing professional development?

Question37: When would on-the-job training be more effective?

Question38: Which of the following is an example of corruption?

Question39: The manager of the payroll department requested a review of the payroll process, but only wants the engagement to include processes related to approval of time worked. What type of activity is this?

Question40: Upon joining the internal audit activity, each new auditor receives a copy of the audit handbook. Which of the following handbook policies has the greatest risk of compromising audit objectivity?

Question41: Which of the following actions would best help the internal audit activity promote continuous improvement in control effectiveness within the organization?

Question42: An IT contractor applied for an internal audit position at a bank. The contractor worked for the bank's IT security manager two years ago. If the audit manager interviewed the contractor and wants to extend a job offer, which of the following actions should the chief audit executive pursue?

Question43: Which of the following scenarios depicts an appropriate role for the internal audit activity to take regarding an organization's risk management process?

Question44: According to IIA guidance, which of the following best describes expense reimbursement fraud'?

Question45: Which of the following is the best way for internal auditors to demonstrate their proficiency to effectively carry out their professional responsibilities?

Question46: Senior management has decided to adopt the key principles approach of the ISO 31000 risk management framework. According to IIA guidance, which of the following principles is most appropriate when implementing the risk management process in a dynamic agency?

Question47: Outsourcing a business activity is considered which of the following risk management techniques?

Question48: Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?

Question49: 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'?

Question50: An organization employs ongoing monitoring and is considering implementing periodic evaluations to assess the continuing effectiveness of its risk management process. Which of the following statements Is true with regard to such periodic evaluations?

Question51: 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?

Question52: Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?

Question53: An organization sells products through distributors. The organization's chief audit executive insists that the organization's code of conduct be applicable to their distributors as well. Which of the following risks would this mitigate?

Question54: Which of the following statements is correct regarding disclosure of conformance or nonconformance with the Standards?

Question55: While preparing the audit plan for an automobile manufacturing company, the chief audit executive (CAE) noted that the company's engineering department received a high risk ranking. However, the internal audit activity is understaffed, and current staff do not possess the necessary skills to adequately assess the effectiveness of the engineering department. What is the most appropriate course of action for the CAE to take?

Question56: According to IIA guidance, which of the following statements is true regarding the internal audit activity's responsibilities in providing consulting services?

Question57: Which of the following statements is true regarding corporate social responsibility (CSR)?

Question58: Which of the following is a strategic risk that internal auditors should consider when performing a third-party risk management engagement?

Question59: Which of the following situations would cause the greatest concern regarding impairment of internal audit objectivity?

Question60: In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?

Question61: An internal audit team was assigned to review the organization's information security protocol After fieldwork was completed an internal auditor identified an error in the review of security access The error could affect the overall results of the engagement Which of the following is the most appropriate course of action for the internal auditor?

Question62: Which of the following best describes the internal audit activity's responsibility within a risk and control framework?

Question63: At what point in time can an organization conclude that the established organizational governance framework was correctly implemented?

Question64: Which of the following is part of a fraud detection program?

Question65: Which of the following is most accurate concerning corporate social responsibility?

Question66: Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?

Question67: According to IIA guidance which of the following correctly describes the standard risk treatments outlined in the process element approach of the framework for risk management?

Question68: To achieve conformance with the Standards, the chief audit executive must include which of the following activities in the quality assurance and improvement program (QAIP)?

Question69: 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?

Question70: According to IIA guidance, which of the following statements regarding the internal audit charter is true?

Question71: An organization's senior management team is awarding substantial bonuses if employees meet financial targets. Which of the following motivators to potentially commit fraud would become most likely in this scenario?

Question72: Which of the following actions best demonstrates an internal auditor exercising due professional care?

Question73: What is the primary reason for establishing a continuing professional development program within an organization's internal audit activity?

Question74: Which of the following statements best describes internal auditors' role in fraud detection?

Question75: Which of the following actions should the organization's governing body perform to provide the most effective governance over the organization's culture?

Question76: Which of the following actions is a chief audit executive most likely to take in order to identify gaps in the internal audit activity's knowledge, skills, and competencies?

Question77: A newly hired internal auditor is performing an engagement that requires significant IT expertise that he does not possess. If the auditor does not alert the chief audit executive about his lack of expertise and decides to perform the engagement anyhow, which principle of the IIA's Code of Ethics would he violate?

Question78: An internal audit team received the following feedback from operational management via a post-engagement survey "Management agrees with all audit findings However, the audit team did not consider our input on the best way to resolve the issues" This feedback is an indication that the internal audit activity may need to improve which of the following interpersonal skills?

Question79: After the final audit report was issued, the engagement supervisor received an expensive gift from management recognizing her assistance in improving the business, if the gift is accepted, which of the following would be true?

Question80: During an audit engagement, a junior staff internal auditor begins to suspect a fraud may have occurred involving a friend of the engagement supervisor. He reports his concerns to the engagement supervisor, who disagrees with his suspicions and directs him to continue with the engagement as planned. Given the circumstance, what is the most appropriate action for the junior auditor to take?

Question81: Which of the following best describes the Standards requirement for collective proficiency of the internal audit activity?

Question82: With regard To IT governance, which of the following is the most effective and appropriate role for the internal audit activity?

Question83: A whistleblower reveals to the chief audit executive (CAE) detailed allegations of potential fraud at the senior management level. Although the CAE has some experience in the area, she chooses to retain an external fraud expert to conduct the investigation. When asked by the director of finance to defend the expenditure, which of the following statements represents the CAE's best response?

Question84: 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?

Question85: Which of the following would be included in quality assurance and improvement program (QAIP) reporting?

Question86: Which of the following should play a leading role in overseeing the ethical atmosphere of an organization?

Question87: Operational management in the IT department has developed key performance indicator reports, which are reviewed in detail during monthly staff meetings. This activity is designed to prevent which of the following conditions?

Question88: Which of the following is true regarding risk analysis?

Question89: According to the Standards, which of the following is a requirement for internal audit professional development plans?

Question90: During a review of the procurement function, an internal auditor identified an existing control for adding new vendors into the vendor contract system. Which of the following would best help the auditor determine the adequacy of the control's design?

Question91: Which of the following statements best represents the duo professional care that is required of internal auditor's?

Question92: According to MA guidance, which of the following is the most accurate statement regarding the internal audit charter?

Question93: Which of the following statements is true regarding the independent peer review process undertaken to fulfill the requirement for an external quality assessment?

Question94: An internal auditor is performing testing to gather evidence regarding an organization's inventory account balance and is mindful of the possibility that the sample used might support the conclusion that the recorded account balance is not materially misstated when, in fact, it is. The auditor's concern best describes which of the following risks?

Question95: At a construction company, supervisors are entitled to bonus payments if there are no safety rule violations on their teams. There are several channels available for workers to report accidents and violations, and all reported violations are investigated. Bonus payment calculations are approved by managers and the head of safety. Which of the controls best addresses the risk that supervisors will conceal accidents on their teams in order to receive the bonus?

Question96: As a result of a high-profile processing error, respective business unit managers are implementing new controls. The internal audit team was asked for their advice regarding the controls. The objective of this consulting engagement would be determined by which of the following?

Question97: Which of the following would decrease or be reduced if an organization establishes and implements excessive internal controls?

Question98: 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?

Question99: 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?

Question100: Which of the following strategies would be the most effective to share an organization's risk of losses through foreign currency transactions related to the accounts payable process?

Question101: According to NA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

Question102: Which of the following is an example of an impairment to an internal auditor's independence?

Question103: According to MA guidance, which of the following is true with regard to the internal audit charter?
1. It specifies the minimum resources needed for assurance engagements.
2. It requires final approval from senior management.
3. It defines the internal audit activity's authority and responsibilities.
4. It describes the expectations for communicating the results of a quality assurance and Improvement program.

Question104: The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?

Question105: During an audit of a foreign subsidiary an internal audit team discovered that products were sold to a prohibited country due to sanctions. What is the best course of action for the internal audit team?

Question106: A chief audit executive assigned an internal auditor to perform an assurance engagement. The auditor concluded with a major audit finding based on hearsay evidence Which of the following competencies did the auditor appear to be lacking?

Question107: Which of the following statements is true regarding control activities'?

Question108: Which of the following is most likely to be considered a control weakness?

Question109: According to IIA guidance, which of the following statements is true regarding risk management in an organization?

Question110: According to HA guidance, which of the following statements is true regarding the internal audit activity's quality assurance and improvement program (QAIP)?

Question111: Which of the following statements is true regarding control activities?

Question112: Which of the following best describes a consulting engagement rather an assurance engagement?

Question113: Which of the following conditions classifies an engagement as a consulting service provided by the internal audit activity?

Question114: The principle that "no action should be taken that may harm in some way the least fortunate people" is an expression of which of the following more general ethical principles?

Question115: According to IIA guidance, which of the following statements is true regarding mentoring programs designed to assist internal auditors with their professional development?

Question116: What is an appropriate first step in an internal auditor's fraud risk assessment to evaluate how the organization manages such risk?

Question117: A newly appointed chief audit executive (CAE) is tasked with creating a new internal audit activity within the organization. Which of the following would the CAE need to include in the new internal audit charter?

Question118: Which of the following options describes the reason that conformance with The IIA's Code of Ethics is mandatory for internal auditors?

Question119: An internal auditor was offered expensive tickets to a sporting event by the manager of an area that she was currently auditing. The auditor politely declined. Which of the following fundamental principles ot the MA Code of Ethics did she display?

Question120: Which of the following best demonstrates that the internal audit activity is using due professional care?

Question121: Following a quality assurance review of a small internal audit activity, the external reviewer and the chief audit executive (CAE) cannot agree on the importance of several deficiencies noted during the review. Which of the following would be the most appropriate next step for the reviewer to take?

Question122: Which of the following should the internal audit activity establish to ensure auditors develop the appropriate skills for conducting audits?

Question123: 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?

Question124: A newly hired internal auditor is most likely to need further education in the area of business acumen in which of the following situations?

Question125: A chief audit executive (CAE) identifies that the internal audit activity lacks a necessary skill to perform a management request for a consulting engagement. According to IIA guidance, which of the following is the most appropriate action the CAE should take regarding the request?

Question126: According to MA guidance, which of the following activities would typically be examined when using the maturity model approach for assessing an organization's risk management program?

Question127: Which of the following actions should an organization take to detect an emerging risk of potential fraud?

Question128: A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy. Which of the following is the most appropriate idea to include?

Question129: Which of the following is true about a system of internal control?

Question130: 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?

Question131: To encourage internal audit objectivity, which of the following is an appropriate policy the chief audit executive should establish?

Question132: According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?

Question133: According to IIA guidance, which of the following actions best demonstrates that due professional care has been considered by the internal audit activity when conducting a review of an organization's assets?

Question134: Which of the following scenarios best demonstrates the application of internal audit proficiency?

Question135: Which of the following processes does the board manage to ensure adequate governance?

Question136: What is the primary purpose of The IIA's Code of Ethics?

Question137: Which of the following best describes the approach the internal audit activity should take to assess and make appropriate recommendations to improve the organization?

Question138: Which type of engagement requires that the client agrees with the techniques used by the internal audit activity?

Question139: An organization is testing a new IT system for digital data storage and security. The internal audit activity has been asked to evaluate the system in a consulting engagement. Although several internal auditors on staff are qualified to perform basic assessments of IT systems, none are familiar with the new system. Which of the following is a legitimate response to the prospective client?
1. Decline the engagement.
2. Proceed with the engagement, performing only those parts of the engagement that the internal auditors are qualified to perform.
3. Accept the engagement and develop the additional competencies in-house prior to the engagement's starting date.
4. Make arrangements to obtain assistance from a competent IT auditing expert.

Question140: Which of the following should catch the internal auditor's attention as a potential red flag for fraud?

Question141: In which of the following scenarios would it be appropriate for the chief audit executive (CAE) to report that the internal audit activity conforms with the Standards?

Question142: The head of human resources notified the internal audit activity that a key account manager was fired because he did not register a large number of contracts with clients As a result the organization was unaware of its duties and would suffer some financial loss Which of the following should be expected from a competent internal auditor who is analyzing this situation?

Question143: The chief audit executive (CAE) of a new internal audit activity is creating an internal audit charter According to IIA guidance, which of the following terms is most likely to be included in the charter?

Question144: A manufacturing organization's chief audit executive (CAE) was approached by the head of security from one of the manufacturer's third party suppliers The head of security requested internal audit records from a recent audit engagement involving the third-party supplier The head of security believed those records contained information that would enable to identify employees of the third-party supplier who may be involved m fraudulent activities What is the most appropriate course of action for the CAE?

Question145: Which of the following scenarios best illustrates the concept of due professional care?

Question146: An organization's operations management is aware of existing internal control deficiencies but they lack the competency to execute internal control measures. Which of the following actions if taken by the internal audit activity is appropriate to assist operating management in achieving continuous improvement on internal controls?

Question147: Which of the following disclosures must the chief audit executive (CAE) include when communicating the results of the quality assurance and improvement program to senior management and the board?

Question148: A series of incidents over the past year reveals several members of senior management possess a limited understanding of the concept and impact of fraud. Which of the following would be the most effective way to approach this issue?

Question149: 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?

Question150: When taken by a chief audit executive, which of the following actions would be most likely to prevent division management from exaggerating sales reports?
1. Announcing a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.
2. Asking the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting.
3. Setting up a hotline for employees to report fraudulent behavior anonymously,
4. Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of sales.

Question151: According to The IIA's Code of Ethics, which of the following best describes the principle of integrity?

Question152: Which of the following best demonstrates internal auditors performing their work with proficiency?

Question153: Which of the following is true with regard to an organization's risk management practices?

Question154: When dealing with various stakeholders which of the following is true regarding an internal auditor's responsibility to remain objective and independent?

Question155: Which of the following is true for consulting engagements'?

Question156: Which of the following is considered to be a threat to the internal auditor's objectivity?

Question157: Which of the following statements best describes how the internal audit activity obtains reasonable assurance that significant risks in the organization are identified and assessed?

Question158: The chief audit executive of an organization assigns audit resources to undertake a consulting engagement requested by senior management the previous year, and a scheduled assurance audit of the procurement process Which of the following appropriately differentiates the two engagements?

Question159: In an environment where employees are frequently penalized for mistakes and the organizational culture is one of fear and blame which of the following is an internal auditor most likely to find?

Question160: Which of the following statements is true regarding consulting engagements?

Question161: Which of the following is an example of a risk avoidance strategy?

Question162: Which of the following is an appropriate roe fa the internal audit activity?

Question163: Tra chiet audit executive (CAE) of large organization is preparing job descriptions to hire five new general internal audit staff, two new IT auditors and a senior auditer how is the CAE likely to describe IT requirements for me general internal audit statt positions?

Question164: Why is it imperative for the chief audit executive to track and develop the educational qualifications of internal audit staff?

Question165: In which of the following audits would the internal auditors most likely contribute to the assessment of organizational governance?

Question166: A senior executive at a government-owned organization received an invitation to attend a public exhibition where he can learn about new trucks relevant to the organization's business. As a special perk, the executive is offered an opportunity to drive a luxury vehicle manufactured by one of the exhibiting companies. Prior to the event, the executive asked for the chief audit executive s (CAE's) advice. What should the CAE recommend as the most appropriate course of action for the executive?

Question167: Which of the following actions by the internal audit activity requires disclosure to the board of nonconformance with the Standards?

Question168: Which of the following is a detective control strategy against fraud?

Question169: Which of the following is a limitation of detective internal controls in fraud management?

Question170: An internal auditor performed a consulting engagement last year which included assisting with management's design of controls over the procurement function. How should the chief audit executive plan an assurance engagement on the adequacy of the internal control system in the procurement function in the current year?

Question171: According to ISO 31000, which of the following statements is correct?

Question172: According to IIA guidance, which of the following corporate social responsibility {CSR) evaluation activities may be performed by the internal audit activity?
1. Consult on CSR program design and implementation
2. Serve as an advisor on CSR governance and risk management.
3. Review third parties for contractual compliance with CSR terms.
4. Identify and mitigate risks to help meet the CSR program objectives.

Question173: In which scenario might it be considered problematic for the chief audit executive (CAE) to provide assurance services over the payroll function?

Question174: An internal auditor is assessing the effectiveness of the organization's risk management practices She checks to see whether risk management is an integrai part of decision making and whether risk management is transparent, responsive to change and addresses uncertainty. According to HA guidance on risk management frameworks, which of the following approaches is the auditor most likely using?

Question175: Which of the following should be implemented to promote independence of the internal audit activity?

Question176: Which of the following statements is true regarding how the scope of a consulting engagement should be established?

Question177: For a new board chair who has not previously served on the organization's board, which of the following steps should first be undertaken to ensure effective leadership to the board?

Question178: Which of the following statements is true regarding the disclosure of results of the quality assurance and improvement program?

Question179: Which of the following best describes organizational governance processes?

Question180: 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?

Question181: Which of the following statements is true with regard to the quality assurance and improvement program (GAIP)?

Question182: During an assurance engagement internal auditors interview operational management to gather and evaluate information. Which approach is most important for internal auditors to be able to listen effectively to interviewees in the given situation?

Question183: According to The IIA's Code of Ethics, which of the following scenarios offers the best example of violating the principle of integrity?

Question184: According to IIA guidance, which of the following actions by a new chief audit executive would be most appropriate to gain an understanding of the current level of knowledge, skills, and competencies required by an internal audit activity to fulfill its responsibilities?

Question185: The internal audit activity is asked to provide consulting services regarding the risks related to implementing a proposed new Inventory management system. Which of the following would be a key consideration of the internal audit activity in accepting this engagement?

Question186: Which of the following statements is true regarding reporting results of the quality assurance and improvement program to senior management and the board?

Question187: Which of the following specifications in an internal audit charter is the most important factor in the internal audit activity's independence?

Question188: Which of the following types of fraud tests would be most effective if an internal auditor was looking for possible fictitious vendors?

Question189: Which of the following would be considered a violation of The HAfs mandatory guidance on independence?

Question190: Which of the following best describes the differences between internal auditors and external auditors?

Question191: What is expected of internal auditors in regards to due professional care?

Question192: Which of the following skills is critical for assessing corporate social responsibility through a self-assessment?

Question193: Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?

Question194: It is important for the chief audit executive to consider the level of competence of the internal audit staff because their competence influences which of the following?

Question195: The board of a newly established organization was discussing the contents of the draft internal audit charter One board member suggested adding to the charter an obligation for the internal audit activity to develop controls in business procedures. The board member explained that the new organization needs professional-level developers, internal auditors have the necessary skills and competencies, and the internal audit activity is well positioned to assume this responsibility. Which of the following would be a potential concern if the board member's suggestion is adopted?

Question196: An electrician visits a client to assess the scope of work. After the visit, the sales office compiles and sends the client a proposal based on the electrician's estimation and approved price list. The internal auditor notices that in the last six months, the number of cancelled proposals has increased substantially. Which of the following is a fraud risk scenario that the auditor should consider in this situation?

Question197: The internal audit activity is performing an assessment of an organization's ethics program, and the engagement scope specifies a focus on the training program's design. According to IIA guidance, which of the following questions would be the most relevant?
1. Does the training include situations that require an ethical decision?
2. What percentage of employees have taken the training?
3. What are the results of the employee assessment of the organization's ethical climate?
4. Does the instructor provide feedback on the thought process to reach an ethical resolution?

Question198: Recently an organization's internal audit activity discovered ghost employees who receive payments Senior management decides to strengthen the internal control measures to address this Which of the following is considered an effective control to mitigate payments to ghost employees?

Question199: Which of the following would be considered a primary control to reduce the risk associated with setting up duplicate vendors?

Question200: With regard to organizational governance assurance, which of the following is an appropriate role for the internal audit activity'?

Question201: The results of an assessment of the adequacy of controls would be considered incomplete or misleading unless the internal auditor considers which of the following?

Question202: An internal auditor wants to compare her organization's governance processes to those of a well-known governance model. Which of the following approaches would the auditor take for this purpose?

Question203: An internal auditor is assessing fraud risks and creating a fraud risk matrix for a particular branch location. Which of the following is most likely to be included in the matrix?

Question204: According to NA guidance which of the following should be documented in the internal audit chatter?