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IIA Essentials of Internal Auditing Sample Questions (Q411-Q416):
NEW QUESTION # 411
What is the primary reason for establishing a continuing professional development program within an organization's internal audit activity?
- A. To ensure that each auditor maintains responsibility for his own professional development.
- B. To ensure all audit staff members are capable of performing a quality self-assessment.
- C. To ensure all internal audit responsibilities can be met
- D. To attract the best and most talented candidates in the profession
Answer: C
NEW QUESTION # 412
An external assessment of an organization's internal audit activity was last completed four years ago Which of the following options would be acceptable this year if the internal audit activity is to fulfill the requirements of the Standards?
- A. An external auditor conducts an audit of the organization which includes information about the internal audit activity
- B. The chief audit executive schedules a self-assessment and the board approves the results
- C. The board nominates an independent individual from senior management in the organization to conduct an assessment of the internal audit activity
- D. The internal audit activity conducts a self-assessment that is validated by a qualified and experienced internal auditor and then schedules a qualified, independent external assessor
Answer: D
NEW QUESTION # 413
Prior to commencing a financial compliance engagement, the engagement supervisor reads the business plan for the finance department and meets informally with the director to learn more about any key issues. Which of the following competencies is the engagement supervisor demonstrating?
- A. The ability to display courage
- B. The ability to understand the needs of stakeholders
- C. The ability to inspire trust
- D. The ability to communicate effectively
Answer: D
NEW QUESTION # 414
As a result of a high-profile processing error, respective business unit managers are implementing new controls. The internal audit team was asked for their advice regarding the controls. The objective of this consulting engagement would be determined by which of the following?
- A. The organization's board of directors.
- B. The chief audit executive.
- C. The business unit manager and the engagement supervisor.
- D. The compliance manager and the business unit manager.
Answer: C
NEW QUESTION # 415
Which of the following scenarios violates The IIA's standard regarding internal audit independence?
- A. The internal audit activity will experience staffing shortages for the next six months due to planned and unplanned leaves of absence; therefore the CAE proposed including fewer audits in the annual audit plan compared to the previous financial year.
- B. An assessment of the risk management function is reviewed by an outside consulting firm because the CAE is temporarily fulfilling the role of risk manager.
- C. The CAE regularly meets with the organization's chief risk officer, who validates all reported audit findings and dictates which will be Included In the package to the audit committee.
- D. The chief audit executive (CAE) reports on the internal audit activity's day-to-day tasks and responsibilities to the CEO.
Answer: C
Explanation:
This scenario violates The IIA's standards regarding internal audit independence because the chief risk officer's involvement in validating and dictating which audit findings are included in the audit committee reports undermines the independence of the internal audit activity. Independence is compromised when audit findings are subject to alteration or selection by another party within the organization, particularly one involved in managing risks that the audit may be assessing.
The IIA's International Standards for the Professional Practice of Internal Auditing, specifically standards related to independence.
NEW QUESTION # 416
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