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IIA Essentials of Internal Auditing Sample Questions (Q468-Q473):

NEW QUESTION # 468
Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?

A. Encourage the CAE to communicate and coordinate with the external auditor.
B. Delegate final approval of the risk-based internal audit plan to the chief audit executive (CAE).
C. Assist the CAE with hiring objective and competent internal audit staff.
D. Approve the annual budget and resource plan for the internal audit activity.

Answer: D

Explanation:
To promote organizational independence for the internal audit activity, the audit committee should approve the annual budget and resource plan for the internal audit activity. This action ensures that the internal audit has sufficient resources to independently carry out its mandate without undue influence from management.
References: IIA guidance and standards concerning the role of the audit committee in supporting the independence and resources of the internal audit function.

NEW QUESTION # 469
The chief audit executive (CAE) has been asked to manage the regulatory compliance function for the organization's retail store operations. Store operations are included in the annual audit plan.
Which of the following strategies best fulfills the requirements of the Standards regarding these audits?

A. Store operations audits can be fully executed with appropriate disclosure to the board.
B. Store operations audits should be performed by an external service provider.
C. A store operations compliance audit should be performed by a staff internal auditor under the direction of the CAE.
D. The scope of store operations audits should exclude compliance.

Answer: B

Explanation:
Section: Volume E

NEW QUESTION # 470
According to IIA guidance, which of the following is the primary reason the chief audit executive discusses the internal audit charter with senior management and the board?

A. To provide information on existing internal audit planning, changes to the internal audit plan, and the rationale for the changes
B. To provide an update on the internal audit activity's quality of engagement supervision.
C. To provide guidance and solicit feedback on managing the internal audit activity as expected by various stakeholders.
D. To provide an understanding of the Mission of Internal Audit and The IIA's mandatory guidance elements.

Answer: A

NEW QUESTION # 471
Which of the following is the first step in the process of identifying relevant fraud risk factors?

A. Identifying preventive and detective controls
B. Gathering information about the organization's business activities to gain an understanding of fraud risks
C. The use of brainstorming, management interviews, analytical procedures and review of prior frauds.
D. Engaging in strategic reasoning to anticipate the fraud scheme

Answer: C

NEW QUESTION # 472
A chief audit executive (CAE) for a specialty retailer is asked by management to review the controls in place to manage their electronic funds transfer process. The internal audit activity has no experience with similar engagements.
What is the most appropriate course of action for the CAE to take?

A. Plan the engagement and begin fieldwork using existing staff.
B. Hire an outside consulting firm to assist with the engagement.
C. Defer the audit until current staff can be appropriately trained.
D. Attempt to discourage management from the request.

Answer: B

NEW QUESTION # 473
......

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IIA Essentials of Internal Auditing Sample Questions (Q468-Q473):

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