Question: 1
According to the International Professional Practices Framework, risk is:
I . Defined as the negative effect of events that are expected to occur.
II . Measured in terms of consequences.
III . Measured in terms of likelihood.
Question: 2
When planning the work program for an assurance engagement, an internal auditor should first review the department's business objectives and then:
Question: 3
It is important for a chief audit executive to seek formal approval from the board regarding an internal audit charter so that:
Question: 4
Which of the following actions by a chief audit executive is most likely to prevent exaggerated sales reports by division management?
I . Hire a new internal auditor who has fraud investigation credentials.
II . Assist the controller in developing and monitoring a series of business process indicators which are historically correlated with, but independent of, sales.
III . Announce a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.
IV . Ask 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.
Question: 5
In assessing the independence of the internal audit activity, a member of a peer review team should consider all of the following factors except:
