QUESTION 293
Which of the following best contributes to the effectiveness of the internal audit activity in an organization?

QUESTION 294
Operational management in the IT department has developed key performance indicator reports, which are reviewed in detail during monthly staff meetings. This activity is designed to prevent which of the following conditions?

QUESTION 295
Which of the following best describes the differences between internal auditors and external auditors?

QUESTION 296
While reviewing first quarter sales transactions, an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because the customer’s account number was not found in the customer master file. In this scenario, which of the following controls was lacking?

QUESTION 297
According to IIA guidance, which of the following best demonstrates due professional care?

QUESTION 298
Which of the following statements is true about visual observation during an audit engagement?
Visual observations should not be documented as the facts have not been substantiated.
Complex conditions observed should be verified prior to communicating observations to management.
Visual observations can be used to detect ineffective controls, idle resources, and safety hazards.
Visual observation can be used during both preliminary survey and fieldwork stages of the audit engagement.

QUESTION 299
Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

QUESTION 300
Which of the following is the most effective way for internal auditors to determine whether ethical values are followed throughout the organization?

QUESTION 301
According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?

QUESTION 302
According to NA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?

QUESTION 303
Faced with a complex,highly technical construction audit engagement,the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.
Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?
1.Professional certification,license,or other recognition of the engineer’s competence in the relevant discipline.
2.Experience of the engineer in the type of work being considered.
3.Compensation or other incentives that the engineer may receive.
4.The extent of other ongoing services that the engineer may be performing for the organization.

QUESTION 304
What is the primary reason a chief audit executive should dedicate time and resources to support continuing professional development of internal audit staff?

QUESTION 305
The internal audit activity plans to audit a supplier quality management process within the supply chain function. In what way is this assurance engagement similar to a typical consulting engagement?

QUESTION 306
An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if:

QUESTION 307
Management of an area under review is aggressive, upset, and questioning the knowledge and experience of the organization’s internal auditors, as the audit results highlight critical findings. The relationship between the internal audit activity and management has continued to degenerate. as previous audit reports also showed a large number of issues. What would be the best strategy for working through the current audit results while also attempting to repair the relationship with management?

QUESTION 308
Which of the following practices is generally most effective to protect internal audit objectivity?

QUESTION 309
Which of the following factors have the greatest influence on the independence of the internal audit activity?

QUESTION 310
A chief audit executive ensures that the internal audit activity provides annual training to management on internal controls. Where is the nature of these services defined?

QUESTION 311
Which of the following would provide the best assessment of an organization’s ethical climate?