IIA IIA-CIA-Part1 Quiz 24 Topic 7 Questions 116-120

Question: 1

A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO's internal control framework?

AControl environment.

BControl activities.

CInformation and communication.

DMonitoring activities.

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Question: 2

Which of the following actions best demonstrates that an internal auditor is exercising due professional care?

AThe auditor performs thorough reviews and provides absolute assurance of regulatory compliance.

BThe auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.

CThe auditor recommends improvements for all of the organization's procedures and practices.

DThe auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.

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Question: 3

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

AAppoint the CAE as a member of the board.

BMove the CAE's functional reporting to an executive who is not on the board.

CObtain full board approval of the internal audit activity's annual audit plan.

DMove the CAE's functional reporting to the audit committee.

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Question: 4

A headquarters-based internal auditor has been sent to a major overseas subsidiary to conduct various engagements. Initially, the internal auditor spends time to become familiar with local customs and organization's practices while embarking on the first engagement. Which of the following competencies does the internal auditor exercise?

ACommunication.

BPersuasion and collaboration.

CBusiness acumen.

DGovernance, risk, and control.

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Question: 5

Which of the following best explains why integrity is a necessary personal quality for internal auditors at all levels?

AInternal auditor integrity enables stakeholders to constantly question the work of the internal audit activity.

BInternal auditor integrity enables the internal auditor to avoid being challenged by any party in the organization.

CInternal auditor integrity enables the internal audit activity to be able to demonstrate independence.

DInternal auditor integrity enables users of internal auditors' work to make important business decisions.

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IIA IIA-CIA-Part1 Quiz:24 Topic:7 Questions:116-120