Question: 1
Company A has a formal comprehensive corporate code of ethics while company B does not.
Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
I . Company A exhibits a higher standard of ethical behavior than does company B.
II . Company A has established objective criteria by which an employee's actions can be evaluated.
III . The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.
Question: 2
Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture?
I . Facilitated meeting
II . Survey
III . Management-produced analysis
Question: 3
If an organization's chief audit executive wants to implement continuous auditing, what is the appropriate order in which key steps should be undertaken?
I . Identify business applications that require access.
II . Implement steps to continuously assess risks and controls.
III . Define objectives of continuous auditing.
IV . Manage and report results.
A III, I, IV, II.
B II, I, III, IV.
C III, I, II, IV.
D II, III, I, IV.
Answer : C
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Question: 4
The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
I . Financial measures.
II . Internal business process measures.
III . Client satisfaction measures.
IV . Innovation and learning measures.
Question: 5
Which of the following is true of engagement recommendations?
I . Specific suggestions for implementation must be included.
II . The internal auditor's observations and conclusions may serve as the basis.
III . Actions to correct existing conditions or improve operations may be included.
IV . Approaches to correcting or enhancing performance may be suggested.
