Question: 1
Internal auditors realize that at times corrective action is not taken even when agreed to by the appropriate parties. Thus, in an assurance engagement, internal auditors should
Question: 2
Assume that the internal auditors' observations are so serious that, in their view, they require immediate action by management. Which of the following statements regarding the internal auditors' responsibility with respect to communicating results and follow-up are true?
i. The conditions should be actively monitored by the internal auditors until corrected.
ii. The initial observations should be communicated to senior management and the audit committee even if the engagement is not complete.
iii. The internal auditors should test the actions implemented by management to determine if they remedy the problem.
Question: 3
An internal audit activity had been requested to perform an engagement to determine whether the organization is in compliance with a particular set of laws and regulations. The engagement did not reveal any issues of noncompliance but did reveal that the organization did not have an established system to ensure compliance with the applicable laws and regulations. The internal auditor's responsibility is to
A . Report that no significant compliance issues were noted.
B . Report that the organization has a significant control deficiency because management has not established a system to ensure compliance.
C . Meet with management to determine what follow-up action will be taken.
D . Monitor to determine that follow-up action has been taken.
Question: 4
The preliminary survey discloses that corrective action was never taken on a prior reported assurance engagement observation. Subsequent field work confirms that the condition still exists. Which of the following courses of action should the internal auditors pursue?
Question: 5
Upon reviewing the final communication of engagement results, senior management decided to assume the risk of not implementing corrective action on certain engagement observations. Evaluate the following and select the best alternative for the chief audit executive:
