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NEW QUESTION 24
According to IIA guidance, which of the following statements describes one of the similarities between assurance and consulting services?
- A. When planning assurance and consulting engagements, internal auditors must consider the strategies and objectives of the activity being reviewed.
- B. Internal auditors determine the engagement objectives, scope, and work program for both assurance and consulting services.
- C. Internal auditors must not provide assurance or consulting services for an activity for which they had responsibility within the previous year.
- D. Both assurance and consulting services generally involve the internal auditor, the area under review, senior management, and the board.
Answer: A
NEW QUESTION 25
Which of the following would most likely be considered a red flag for fraud?
- A. An organization lacks a whistleblower hotline for reporting suspicious activity.
- B. An employee in charge of payroll disbursements has rotated these duties with several colleagues.
- C. An employee with significant personal debt is in charge of handling large wire transfers for the organization.
- D. A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.
Answer: C
NEW QUESTION 26
Which of the following is a requirement for an assurance engagement that may not be for a consulting engagement?
- A. Auditors cannot participate in an assurance engagement of a function for which they previously performed a consulting engagement.
- B. The internal audit activity must ensure management actions have been implemented effectively or risk accepted.
- C. The scope and objective of the engagement is agreed upon based on the engagement client’s needs.
- D. The internal audit activity has to ensure team members’ objectivity is not impaired.
Answer: A
NEW QUESTION 27
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?
- A. Observation.
- B. Document verification.
- C. Inquiry.
- D. Analytical review.
Answer: D
NEW QUESTION 28
A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity’s chief financial officer (CFO).
Which of the following would impair the internal audit function’s independence?
- A. The CFO administers the annual evaluation process for the internal auditors.
- B. The CFO determines the scope of internal audit work in the accounting department.
- C. The CFO provides feedback on the CAE’s audit reports.
- D. The CFO manages the accounting of the budget for the internal audit function.
Answer: B
NEW QUESTION 29
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