If the skills and competencies are not present within the internal audit activity to complete an ad-hoc
assurance engagement, which of the following is an acceptable resolution?
C
When taken by a chief audit executive, which of the following actions would be most likely to
prevent division exaggerating sales reports?
1) Announcing a series of internal audit engagements focusing on compliance with corporate sales-
reporting
2) Asking the president and the board to issue a statement of corporate policy stressing the
importance of account reporting and the negative consequences of intentional misreporting.
3) Setting up a hotline for employees to report fraudulent behavior anonymously.
4) Assisting the controller in developing and monitoring a series of business process indicators ,
which are history with, but independent of sales.
B
Which of the following best describes the risk contained in an initial public offering for a new stock?
C
Which of the following actions should the internal audit activity take during an audit engagement
when examining the effectiveness of risk management processes?
A
A large sales organization maintains a system of internal control according to the COSO model and
has updated its code of conduct. This change relates to which component of the COSO framework?
D
Which of the following offers the best evidence that the internal audit activity has achieved
organizational independence?
B
Which of the following is an example of a risk avoidance strategy?
C
Which of the following statements accurately describes the responsibility of the internal audit
activity regarding IT governance?
1.
The internal audit activity does not have any responsibility because IT governance is the
responsibility of the board and senior management of the organization.
2.
The internal audit activity must assess whether the IT governance of the organization supports
the organization's strategies and objectives.
3.
The internal audit activity may assess whether the IT governance of the organization supports
the organization's strategies and objectives.
4. The internal audit activity may accept requests from management to perform advisory services
regarding how the IT governance of the organization supports the organization's strategies and
objectives.
A
Which of the following documents is most appropriate in promoting the objectivity of the internal
audit activity?
C
Management is developing and implementing a risk and control framework for use throughout the
organization. Which of the following elements should be included in the organization's control
framework?
1. Appropriate levels of authority and responsibility.
2. Supervision of staff and appropriate review of work.
3. The seniority of management in the organization.
4. The ability to trace each transaction to an accountable and responsible individual.
D