EMT Practice Test

1. Question Content...

---

Question1: In addition to the internal auditor, which of the following parties need to be present at an exit or closing conference?

Question2: 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?

Question3: Which of the following creates an opportunity for an employee to commit fraud?

Question4: Which of the following is the most important initial action for a chief audit executive to perform when establishing a new internal audit activity?

Question5: Which of the following statements is appropriate to include in a high-quality internal audit engagement communication?

Question6: What is the purpose of establishing engagement objectives during the planning phase of an internal audit?

Question7: Which of the following best describes the difference between inherent risk and residual risk?

Question8: When is it appropriate for the internal auditor to determine the engagement's scope and objectives?

Question9: During an assurance engagement of an organization's procurement process, an internal auditor obtained the policy that specified the authorized dollar limits for invoices. This document would best support which of the following attributes of an audit report?

Question10: An internal auditor discovers that a vendor had submitted invoices and was paid for services not rendered. Which of the following controls is most appropriate to address this type of issue?

Question11: Which of the following situations is most likely to require a compliance engagement from the internal audit activity?

Question12: 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?

Question13: According to IIA guidance, which of the following are commonly standardized workpaper elements?

Question14: Which of the following consulting engagements leverages an internal auditor's risk and control knowledge to help the organization keep abreast of emerging risks?

Question15: In the absence of any action to control or modify the circumstances, the probability of loss arising from circumstances existing in an environment is known as which of the following types of risk?

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

Question17: According to IIA guidance, which one of the following hiring strategies is most appropriate to fill internal audit positions?

Question18: Which of the following is a common computer-assisted audit tool used to analyze data?

Question19: During engagement planning, which of the following would provide an internal auditor with a sufficient understanding of the process being audited?

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: What is the primary purpose of a preliminary survey?

Question22: Which sampling technique uses a nonrandom selection process that is expected to be representative of the population as a whole?

Question23: An internal auditor is reporting on the organization's asset management system. Which of the following would likely add the greatest value to the organization?

Question24: According to The IIA's Code of Ethics, which of the following best illustrates the principle of confidentiality?

Question25: An internal auditor wants to establish the reasonableness of the current period's total payroll costs for the finance department. She divides the actual monthly payroll cost by the number of employees to derive an average cost per employee. Which of the following comparisons to this average cost would be considered trend analysis?

Question26: 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?

Question27: Which of the following best ensures that the internal audit activity is free from undue interference from management?

Question28: Which of the following scenarios would be the strongest indicator of fraud in an accounts payable process?

Question29: Which of the following statements is true with regard to the adequacy of a control design?

Question30: An internal auditor was gathering information regarding the receiving process and decided that a narrative memorandum was the best way to document the process. Which of the following explanations best supports the auditor's decision?

Question31: Based on the three elements of the Fraud Triangle, which of the following might be considered a fraud indicator related to the opportunity element?

Question32: An internal auditor wants to use computerized audit tools and techniques. Which of the following is a common obstacle that the auditor is likely to face?

Question33: Which of the following best describes an audit engagement in which the objective is to appraise the economy of an oil shale mining process and the degree to which yearly production targets are being achieved?

Question34: Which of the following statements is true regarding root cause analysis?

Question35: 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?

Question36: During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization' s total budget. Which of the following best supports the auditor's recommendation to reduce the level of reviews?

Question37: Which of the following best describes the knowledge, skills, and abilities that internal auditors should possess with regard to fraud?

Question38: A newly hired internal auditor has been asked to examine the sales of a specific product over the last four years. Which of the following analytical review techniques should the auditor employ?

Question39: Which of the following would be considered out of scope for a purchasing process audit engagement?

Question40: Which of the following is a purpose of an embedded audit module?

Question41: Which of the following analytical procedures would be most effective for an internal auditor to examine changes in performance over time?

Question42: Which of the following interview techniques would be most effective in a fraud investigation?

Question43: Which of the following tools would assist with the coordination of efforts between the internal audit team and operational management?

Question44: Which of the following best explains why internal auditors should identify risk scenarios during a risk assessment of the area being audited?