NEW QUESTION 60
Reviewing prior audit reports and supporting workpapers before an engagement starts enables an internal auditor to do which of the following?
1. To understand better the activity and processes that will be audited.
2. To identify the audit procedures that will be used during the engagement.
3. To ensure that matters of greatest vulnerability will be addressed.
4. To use the information obtained as evidence in the current engagement.

NEW QUESTION 61
An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?

NEW QUESTION 62
According to IIA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?

NEW QUESTION 63
Internal auditors must exercise due professional care by considering which of the following?
1. Cost of assurance in relation to potential benefits.
2. Adequacy and effectiveness of governance, risk management, and control processes.
3. Management’s competency level in the area being evaluated.
4. Probability of significant errors, fraud, or noncompliance.

NEW QUESTION 64
According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?
1. The complexity of the work required.
2. The needs and expectations of the client.
3. The potential value of the engagement compared to the effort.
4. Information regarding assumptions and procedures to be employed.

NEW QUESTION 65
While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?

NEW QUESTION 66
When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?
1. Findings of the last audit engagement performed.
2. Probability of significant errors, irregularities, or noncompliance.
3. Extent of work needed to achieve engagement objectives.
4. Cost of the engagement versus the potential benefits.

NEW QUESTION 67
An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts as bad debts. Which of the following irregularities is the most likely cause of the auditor’s suspicion?

NEW QUESTION 68
A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

NEW QUESTION 69
The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive’s primary focus to achieve these recommended improvements?

NEW QUESTION 70
A chief audit executive (CAE) is reviewing the internal audit activity’s performance and is concerned that the average number of revisions to findings is steadily rising, making it increasingly difficult to trace the finding to the supporting evidence and workpapers. According to MA guidance, which of the following elements of the internal audit activity’s quality assurance and improvement program would provide the CAE with the most helpful insight into the cause of this problem?

NEW QUESTION 71
Which of the following would be considered a preventive control?

NEW QUESTION 72
According to IIA guidance, which of the following statements is true?

NEW QUESTION 73
Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?

NEW QUESTION 74
When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?
1. Include copies of all client files that were reviewed for the audit.
2. Avoid the use of professional, industry-appropriate jargon and technical terms.
3. Indicate the original sources of all data and information used in the workpapers.
4. Leave blank space for cross-references to be completed during the post-audit process.

NEW QUESTION 75
An internal audit team is performing an audit of workplace accident claims.
Which of the following actions by the audit team best demonstrates due professional care?

NEW QUESTION 76
An internal audit activity is using the auditing-by-element approach to audit the organization’s controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

NEW QUESTION 77
An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?

NEW QUESTION 78
Which of the following enhances the independence of the internal audit activity?

NEW QUESTION 79
Which of the following actions does not violate the IIA Code of Ethics or Standards?