IIA IIA-CIA-Part1 Quiz 7 Topic 4 Questions 31-35

Question: 1

Which of the following statements describes impairment to the internal auditor's objectivity?

AAn internal auditor reviews a purchasing agent's contract drafts prior to their execution.

BAn internal auditor reduces the scope of an audit engagement due to budget restrictions.

CAn internal auditor receives a promotional gift that is available to the organization's employees.

DAn internal auditor performs an assessment of the operations for which he was recently responsible.

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Question: 2

Which of the following enhances the independence of the internal audit activity?

AThe chief audit executive (CAE) approves the annual internal audit plan.

BThe CAE administratively reports to the board.

CThe audit committee approves the CAE's annual salary increase.

DThe chief executive officer approves the internal audit charter.

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Question: 3

Which of the following best ensures the independence of the internal audit activity?

1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.

2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.

3. The internal audit charter requires the CAE to report functionally to the audit committee.

A3 only

B1 and 2 only

C2 and 3 only

D1, 2, and 3

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Question: 4

An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict.

Which of the following is the most appropriate course of action for the CAE to take?

AReplace the auditor with another audit staff member.

BContinue with the present auditor, as more than one year has passed.

CWithdraw the audit team and outsource the financial audit of the division.

DWork with the division's management to resolve the situation.

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Question: 5

Which of the following statements is true regarding assurance services provided to clients outside of the organization?

AAssurance services for outside clients are not covered under the internal audit charter.

BAssurance services for outside clients must be approved on a case-by-case basis by the board of directors.

CThe nature of assurance services for outside clients should be defined in the internal audit charter.

DThe nature of assurance services for outside clients is the same as for internal clients.

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IIA IIA-CIA-Part1 Quiz:7 Topic:4 Questions:31-35