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Free IIA-CIA-Part1 IIA Updates

Essentials of Internal Auditing Questions and Answers

Question 13

A global organization established a new internal audit activity and the recently hired chief audit executive needs to develop an internal audit manual for internal auditors Among the following policies in the manual, which would facilitate internal auditors in upholding their objectivity?

Options:

A.

Internal auditors shall attend professional workshops to refresh internal audit norms and concepts

B.

Internal auditors' performance is synchronized with satisfaction ratings given by audit clients

C.

Internal auditors take prior audit results into account when conducting current audit engagements

D.

Internal auditors observe the audit client’s expectations when scoping audit engagements

Question 14

Which of the following statements is true regarding corporate social responsibility (CSR)?

Options:

A.

Many of the areas explored by CSR are normally included in an audit universe or annual audit plan,

B.

Despite significant corporate resources spent on CSR reporting, investors generally do not rely on CSR information.

C.

Unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary.

D.

Typically, operating management does not have a major role to play based on the public nature of reporting

Question 15

According to NA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?

Options:

A.

Developing policies and procedures for the internal audit activity.

B.

Ensuring the internal audit activity is not found fallible during audit engagements.

C.

Undertaking all engagements that management requests of the internal audit activity.

D.

Ensuring the internal audit activity reports functionally to the board of directors.

Question 16

According to IIA guidance, which of the following threats to objectivity is described as familiarity'?

Options:

A.

An internal auditor is a close friend or relative of the manager or an employee of the audit client

B.

An internal auditor has a long-term business relationship with the audit client.

C.

An internal auditor has an economic stake in the performance of the organization

D.

An internal auditor is exposed to or perceived to be exposed to pressures from external parties