New Year Special 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

CIA IIA-CIA-Part1 Book

Page: 32 / 54
Total 721 questions

Essentials of Internal Auditing Questions and Answers

Question 125

An internal auditor believes that the internal audit activity's independence is impaired. Which of the following actions should the internal auditor take first?

Options:

A.

Report the impairment to senior management

B.

Discuss the impairment with the audit manager

C.

Ascertain the best approach to disclose the impairment.

D.

Decide on the extent of impact of the impairment

Question 126

In which of the following situations may the internal audit activity report conformance with the Standards?

Options:

A.

An internal audit activity has been in existence at least five years and has not completed an external assessment,

B.

An internal auditor was assigned to an audit engagement but did not meet individual objectivity requirements.

C.

The internal audit activity prepared an internal audit plan that was not risk-based.

D.

The internal audit activity has been in existence fewer than five years, but periodic self-assessments were conducted.

Question 127

Which of the following situations undermines the independence of the internal audit activity?

Options:

A.

The internal audit activity is responsible for the company's risk management function, and its head manager reports to the chief audit executive.

B.

A senior member of the internal audit activity once worked in the corporate finance department.

C.

The organization’s CEO reviews the internal audit activity’s annual budget per the organization’s policies and procedures.

D.

The internal audit activity often uses management's risk profile to build its own risk profile for annual planning.

Question 128

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?

Options:

A.

Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity

has addressed all areas of nonconformance and the audit committee has been notified.

B.

Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.

C.

Indicate that the internal audit activity operates in partial conformance with the Standards t as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.

D.

Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to ail parties who received the original reports.

Page: 32 / 54
Total 721 questions