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IIA Internal Audit Fundamentals Sample Questions (Q346-Q351):

NEW QUESTION # 346
In selecting a team to perform an internal audit of a purchasing operation, which of the following characteristics would not preclude an auditor from being selected?
1. The auditor's spouse is employed by the clerical section of the purchasing records unit.
2. The auditor had been a purchasing agent five years earlier.
3. The auditor's family owns a business that regularly sells goods to the organization.
4. The auditor has received a desk calendar as a promotional gift from a vendor.

A. 2 and 4 only
B. 1 and 3 only
C. 2 and 3 only
D. 1 and 4 only

Answer: A

NEW QUESTION # 347
A series of incidents over the past year reveals several members of senior management possess a limited understanding of the concept and impact of fraud. Which of the following would be the most effective way to approach this issue?

A. A comprehensive fraud risk assessment and management program should be carried out.
B. The board should ask the internal audit activity to perform additional assurance engagements.
C. Anti-fraud and whistleblowing policies should be implemented and their importance should be clearly stated.
D. The organization should conduct training sessions on fraud, which should be attended by senior management and staff.

Answer: D

Explanation:
Conducting training sessions on fraud that should be attended by senior management and staff is the most effective approach to address the issue of senior management's limited understanding of fraud. Training provides direct education on what constitutes fraud, how it impacts the organization, and the role of management in preventing and detecting fraud, thereby increasing awareness and reducing the risk of fraud.
Fraud risk management guidelines; IIA guidance on fraud awareness and training.

NEW QUESTION # 348
After the final audit report was issued, the engagement supervisor received an expensive gift from management recognizing her assistance in improving the business, if the gift is accepted, which of the following would be true?

A. The engagement supervisor violated The IIA's Code of Ethics principle of integrity.
B. The engagement supervisor did not violate any principles of The IIA's Code of Ethics.
C. The engagement supervisor violated The IIA's Code of Ethics principle of confidentiality.
D. The engagement supervisor violated The IIA's Code of Ethics principle of objectivity.

Answer: D

NEW QUESTION # 349
The chief audit executive for an organization has just completed a risk assessment process, identified the areas with the highest risk, and assigned an audit priority to each. Which of the following statements is true and consistent with the International Professional Practices Framework?
I.Items should be ranked in the order of quantifiable dollar exposure to the organization.
II.
The audit priorities should be in order of major control deficiencies.
III.
The risk assessment, though quantified, is the result of professional judgments about both exposures and probability of occurrences.

A. I, II, and III.
B. I only.
C. II and III only.
D. III only.

Answer: D

NEW QUESTION # 350
Which of the following actions is management likely to take to fulfill its corporate social responsibility objectives?

A. Make generous contributions to society when requested in exchange for an increased market share of the company's product.
B. Minimize profits to its owners and shareholders in an effort to ensure that goods and services required by society are produced.
C. Respect the rights of individuals and treat everyone the same unless it's relevant to the company's goals and tasks.
D. Accept the opportunity to commit acts that may be illegal while ensuring that economic requirements of society are achieved.

Answer: B

NEW QUESTION # 351
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