IIA IIA-CIA-Part1 Quiz 12 Topic 7 Questions 56-60

Question: 1

Internal auditors must exercise due professional care by considering which of the following?

1. Cost of assurance in relation to potential benefits.

2. Adequacy and effectiveness of governance, risk management, and control processes.

3. Management's competency level in the area being evaluated.

4. Probability of significant errors, fraud, or noncompliance.

A1 and 2 only

B1, 2, and 3 only

C1, 2, and 4 only

D2, 3, and 4 only

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Question: 2

According to IIA guidance, which of the following is least compliant with the requirements regarding an internal auditor's need for objectivity?

AAn internal auditor assessed the effectiveness of controls over payroll software, which he had helped implement with a previous employer.

BAn internal auditor participated in an audit of controls around absenteeism, despite providing some consultation on controls in this area earlier in the year.

CAn internal auditor performed an assurance engagement for the effectiveness of accounts payable access controls, one of which he previously helped to design.

DAn internal auditor, previously employed in the quality assurance operations area, performed a consulting engagement for the operations manager.

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Question: 3

Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.

Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?

1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.

2. Experience of the engineer in the type of work being considered.

3. Compensation or other incentives that the engineer may receive.

4. The extent of other ongoing services that the engineer may be performing for the organization.

A1 and 4 only

B2 and 3 only

C3 and 4 only

D1, 2, and 4 only

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Question: 4

A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?

APreparing the financial statements for the company's defined contribution plan.

BPerforming a pre-implementation review of the company's payroll application.

CProviding the COBIT framework as a possible IT management tool.

DReviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.

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Question: 5

An internal audit charter should do which of the following?

AOutline the schedule of future audits.

BDefine the scope of internal audit activities.

CEstablish the size of the internal audit activity.

DCommunicate the internal audit activity's goals.

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IIA IIA-CIA-Part1 Quiz:12 Topic:7 Questions:56-60