Q88. An electric company hires several independent contractors to trim trees that are in close proximity to electricity lines. Which of the following would be the most effective control to mitigate the risk of contractors submitting fraudulent invoices regarding work completed?

Q89. Which of the following would not be a red flag for fraud?

Q90. Which of the following is a requirement for an assurance engagement that may not be for a consulting engagement?

Q91. The primary reason that a bank would maintain a separate compliance function is to:

Q92. An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division.
The use of an analytical review as a verification technique would not be a preferred approaches if:

Q93. An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization.
Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?

Q94. According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?
I.The audit committee has requested assurance of the treasury department’s compliance with a new policy on the use of financial instruments.
II.
Treasury management has not instituted any risk management policies.
III.
Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
IV.
The external auditors have indicated some difficulties in obtaining account confirmations.

Q95. Which of the following steps would not be included in a program of selecting and developing human resources for an internal audit department?

Q96. Which of the following statements is true regarding how the scope of a consulting engagement should be established?

Q97. Which of the following situations is most likely to prompt the internal audit activity to disclose its nonconformance with the Standards?

Q98. Once the cause of a problem has been identified, the next step is to:

Q99. An organization references a customer order with an approved customer file and credit limit before accepting an order. Which type of control does this process exemplify?

Q100. According to IIA guidance,which of the following is the most likely obstacle to undertaking a quality assurance and improvement program by the internal audit activity?

Q101. The board of a newly established organization was discussing the contents of the draft internal audit charter One board member suggested adding to the charter an obligation for the internal audit activity to develop controls in business procedures. The board member explained that the new organization needs professional- level developers, internal auditors have the necessary skills and competencies, and the internal audit activity is well positioned to assume this responsibility. Which of the following would be a potential concern if the board member’s suggestion is adopted?

Q102. Once the cause of a problem has been identified, the next step is to:

Q103. Which should the internal auditor first consider when assessing fraud risks during an engagement?

Q104. Which of the following statements is true regarding consulting and assurance engagements performed by the internal audit activity’?

Q105. According to IIA guidance, which of the following actions is a chief audit executive required to take with regard to reporting the results of the quality assurance and improvement program?

Q106. What is expected of internal auditors in regards to due professional care?

Q107. In its five years of existence, an internal audit activity conducted a single internal assessment of its quality assurance and improvement program (QAIP). The results of that assessment showed that the internal audit activity did not conform with the Standards. Prior to this, an external assessment of the internal audit activity’s QAIP was conducted, which reported that the internal audit activity was in conformance with the Standards.
Considering the two assessments, what would be the internal audit activity’s current state of conformance with the Standards?