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| Section | Objectives |
|---|
| Independence and Objectivity | - Individual objectivity and impairment - Organizational independence
|
| Quality Assurance and Improvement Program (QAIP) | - Internal quality assessments - External quality assessments - Continuous improvement of internal audit function
|
| Proficiency and Due Professional Care | - Competence and skills requirements - Due professional care in engagements
|
| Foundations of Internal Auditing | - Internal audit role in governance, risk, and control - IIA Standards and Code of Ethics overview - Internal audit definition, purpose, and value
|
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IIA Internal Audit Fundamentals Sample Questions (Q848-Q853):
NEW QUESTION # 848
A newly hired internal auditor is most likely to need further education in the area of business acumen in which of the following situations?
- A. She previously served on the organization's external audit team and was recruited to the internal audit activity following the current year's financial audit.
- B. She was recruited from the internal audit activity of another organization that operates in a different industry.
- C. She was transferred from the managerial accounting department of the same organization.
- D. She was offered a permanent position after she had worked with the organization for two years in a temporary auditor-in-training position.
Answer: B
NEW QUESTION # 849
Which of the following internal control weaknesses would an auditor most likely detect while reviewing a flowchart that depicts the purchasing function of an organization?
- A. Payments to suppliers are made before goods are received.
- B. The organization is not taking advantage of quantity discounts available from its suppliers.
- C. Payments for goods received have not been authorized at the appropriate level.
- D. Purchasing policies have not been updated.
Answer: A
Explanation:
Section: Volume A
Explanation
NEW QUESTION # 850
An internal auditor at a multinational organization is reviewing the effectiveness of the organization's risk management framework. In this scenario, which of the following statements is true?
- A. Regardless of their location, employees at all levels share responsibility for designing effective controls to mitigate risks.
- B. The auditor should consider local cultures and customs in various regions when assessing control effectiveness.
- C. To achieve an effective internal control environment, the organization's risk management plan must be documented and communicated to all levels throughout each region.
- D. Setting clear objectives is a precondition to effectively identifying, assessing, and responding to the organization's risks.
Answer: D
NEW QUESTION # 851
While conducting an audit, an internal auditor notices an unusual increase in sales among a small number of units within the organization. The units also experienced persistent negative cash flows despite reported earnings and earnings growth. Which type of fraud do the auditor's findings most likely indicate?
- A. Inventory theft.
- B. Employee collusion with customer organizations.
- C. Fictitious revenues.
- D. Improper asset valuation.
Answer: C
NEW QUESTION # 852
Which of the following would be the most important consideration by the internal audit activity when selecting employees to perform an internal quality assessment?
- A. Their reporting line within the organization.
- B. Previous experience working with the internal audit activity.
- C. The nature of their regular duties and responsibilities.
- D. Their understanding of auditing standards.
Answer: D
NEW QUESTION # 853
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