IIA IIA-CIA-Part1 Quiz 108 Topic 3 Questions 536-540

Question: 1

A chief audit executive (CAE) for a specialty retailer is asked by management to review the controls in place to manage their electronic funds transfer process. The internal audit activity has no experience with similar engagements. What is the most appropriate course of action for the CAE to take?

APlan the engagement and begin fieldwork using existing staff.

BAttempt to discourage management from the request.

CHire an outside consulting firm to assist with the engagement.

DDefer the audit until current staff can be appropriately trained.

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Question: 2

Using the internal audit department to coordinate regulatory examiners' efforts is beneficial to the organization because internal auditors can:

AInfluence regulatory interpretation of law to better match corporate practice.

BRecommend changes to the scope of the regulatory examiners' review.

CPerform fieldwork for the regulatory examiners and thus shorten the regulatory examiners' review.

DSupply evidence of adequate compliance testing through internal audit workpapers and reports.

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Question: 3

Internal auditors can benefit from a strong relationship with the external auditors because external auditors can:

AProvide internal auditors with an independent and knowledgeable viewpoint.

BConcur with the internal auditors' reports and thus improve the quality of assurance provided to management.

CIncrease the effectiveness of internal control sampling techniques.

DAssist the internal auditor by providing information obtained from similar audits with other clients.

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Question: 4

Risk assessments can vary in format, but generally include.

I . A description of identified risks.

II . Tests of audit controls.

III . A system of rating risks.

IV . Sample size identification.

AI and II only

BI and III only

CI, III, and IV only

DII, III, and IV only

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Question: 5

Risk assessments are valuable to the internal audit activity's planning process because they assist in:

AEliminating all areas with low risk from the audit plan.

BEducating management on the importance of keeping the internal audit activity informed of organizational changes.

CIdentifying the audit universe or auditable activities that need to be reviewed.

DIdentifying risks that management and the internal auditors have overlooked.

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IIA IIA-CIA-Part1 Quiz:108 Topic:3 Questions:536-540