IIA IIA-CIA-Part2 Quiz 174 Topic 2 Questions 866-870

Question: 1

Successful consultative communication in an internal auditing engagement is partially based on feedback from engagement clients about internal auditors' actions during the engagement. This feedback

AShould go only to senior management as a means of reviewing the internal auditors.

BShould go only to the internal auditors to help them improve their performance.

CShould go to both management and the internal auditors to ensure business value is being added.

DWill keep clients on the defensive regarding the internal auditors.

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Question: 2

During an operational engagement, an internal auditor observes a large number of aboveground storage containers and a large amount of black emissions from a smokestack. The organization has an environmental safety department. The engagement is not designed to consider environmental concerns. The best course of action is to

AMake a note to consider environmental risk concerns when developing the engagement plan for the next year, but do not expand the scope of the existing engagement because the budget and risk priorities are already set.

BReport the observations to the engagement committee and seek their advice on whether the engagement should be expanded for the environmental audit.

CDocument the observations and report them to the environmental safety department.

DDetermine if their response will be timely, and follow-up to determine if they have taken timely action.

EInquire of local management as to the use of the storage tanks to determine if they are properly classified as an asset. Do not take action on the environmental issues because the internal auditor is untrained in the area, and such action is the responsibility of an already existing department.

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Question: 3

In which of the following duties would the chief audit executive least likely have a primary role?

ADetermine the need for expanded testing.

BReview the summary observations sheet.

CSelect or approve team members.

DOrganize and draft the final engagement communication

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Question: 4

Which of the following parties should the chief audit executive not consult upon the discovery of sensitive information?

ASenior management within the chain of command.

BA party outside the organization.

CThe board of directors.

DLegal counsel.

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Question: 5

Which of the following actions should a chief audit executive most likely take upon discovery of fraudulent financial reporting by a publicly traded company?

AThe chief audit executive should try to solve the problem before consulting management.

BThe chief audit executive may discuss the problem with the audit committee and decide upon a course of action.

CThe chief audit executive should accelerate the chain of command discussions with senior management.

DThe chief audit executive should report the fraudulent financial reporting to the appropriate governmental agency.

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IIA IIA-CIA-Part2 Quiz:174 Topic:2 Questions:866-870