IIA IIA-CIA-Part1 : Internal Audit Fundamentals

Which of the following scenarios would most likely impair the independence of an internal audit activity?

• A. The internal audit budget is reduced by management requiring the removal of all lT-related engagements from the audit plan
• B. The operating effectiveness of a control is reported as ' satisfactory. " because no concerns were identified during planning
• C. A relative of an internal audit team member works m a department being reviewed
• D. An audit manager removes a finding from the draft report due to disagreements with the chief financial officer

A senior executive at a government-owned organization received an invitation to attend a public exhibition where he can learn about new trucks relevant to the organization ' s business. As a special perk, the executive is offered an opportunity to drive a luxury vehicle manufactured by one of the exhibiting companies. Prior to the event, the executive asked for the chief audit executive s (CAE's) advice. What should the CAE recommend as the most appropriate course of action for the executive?

• A. Decline the invitation to the exhibition.
• B. Ask the board to decide on the issue.
• C. Attend the event, but decline the offer to use the luxury vehicle
• D. Select a lower-level employee to enjoy the luxury vehicle instead

During a review of the procurement function, an internal auditor identified an existing control for adding new vendors into the vendor contract system. Which of the following would best help the auditor determine the adequacy of the control ' s design?

• A. Independent confirmations sent to vendors.
• B. Flowchart of the vendor addition process.
• C. Interview with management of the procurement function.
• D. Analysis of the control ' s costs and benefits.

An internal audit activity is performing a governance engagement. Which of the following would provide the best evidence for an internal auditor when evaluating the organization's culture?

• A. Ethics and integrity policy; structured interviews with employees; and established and communicated values, mission, and vision.
• B. Succession plans, development programs, and job descriptions with responsibilities and authorities.
• C. Personnel and customer surveys, actual reports, and due diligence results regarding third-party governance practices.
• D. Details on mandatory reporting to third parties, disclosure committee charter and responsibilities, and the internal communication system.

To comply with the proficiency standard, which of the following would the chief audit executive likely consider as the primary hiring criterion when choosing a new internal auditor?

• A. The auditor ' s skills compared to those already possessed by other audit staff.
• B. The length and consistency of the auditor ' s work experience.
• C. The auditor ' s ability to be self-motivated and a good team player.
• D. The auditor ' s demonstrated problem-solving skills.