NEW QUESTION 88
Which of the following elements is important for an internal auditor to consider when performing a privacy risk assessment of an organization?
I. Areas where personal information is collected, used, stored, and disseminated.
II. Inherent risk.
III. Privacy practices of competitors.
IV. Third-party recipients of information.

NEW QUESTION 89
Which of the following methods is not valid for completing continuing professional education hours?

NEW QUESTION 90
Which of the following is least likely to be considered material in an audit of a medium-sized organization?

NEW QUESTION 91
The chief commodity trader for a large energy company learns from a friend that a competitor will likely fail its upcoming regulatory audit and will be forced to temporarily decrease production. If the information is true, the trader has short-term opportunities to make trades that will financially benefit the trader’s company and will lead to a substantial increase in the trader’s performance bonus. However, if the information is not true, making the trades will significantly increase the company’s risk of being caught in a long position. From an ethical perspective, which of the following would be the most appropriate course of action for the trader to take?

NEW QUESTION 92
Which of the following situations allows for the most objectivity on the part of an internal auditor?

NEW QUESTION 93
When an external auditor unknowingly fails to modify an opinion on financial statements that are materially misstated, this is an example of:

NEW QUESTION 94
Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?

NEW QUESTION 95
Which of the following components influences the risk consciousness of an organization’s people and is the basis for all other components of enterprise risk management?

NEW QUESTION 96
According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?

NEW QUESTION 97
Which of the following is not an appropriate role for internal auditors after a disaster occurs?

NEW QUESTION 98
A company has entered into a $20, 000, 000 fixed-price contract with a general contractor for the construction of a new retail outlet. For this contract, which of the following would represent the greatest risk?

NEW QUESTION 99
Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

NEW QUESTION 100
Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.

NEW QUESTION 101
Risk assessments are valuable to the internal audit activity’s planning process because they assist in:

NEW QUESTION 102
An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

NEW QUESTION 103
According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?

NEW QUESTION 104
Which of the following actions by a chief audit executive is most likely to prevent exaggerated sales reports by division management?
I.Hire a new internal auditor who has fraud investigation credentials.
II.Assist the controller in developing and monitoring a series of business process indicators which are historically correlated with, but independent of, sales.
III.Announce a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.
IV.Ask the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting.

NEW QUESTION 105
Which of the following are acceptable resources for a chief audit executive to use when developing a staffing plan?
1. Co-sourcing arrangements.
2. Employees from other areas of the organization.
3. The organization’s external auditors.
4. The organization’s audit committee members.

NEW QUESTION 106
With regard to external assessments of an internal audit activity (IAA),which of the following is the chief audit executive required to discuss with the board?