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NEW QUESTION 36
An organization that outsources much of its internal audit work to an external service provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards?
- A. Engaging an external industry associate that performed a similar review for a supplier of the organization.
- B. Selecting a team from an independent entity that previously employed the chief audit executive of the organization.
- C. Using the same external service provider because of its competency and experience with the organization.
- D. Using a team under the direction of the organization's chief audit executive, and obtaining validation from a former manager of the internal audit activity.
Answer: A
NEW QUESTION 37
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?
- A. Evaluating risk management processes.
- B. Recommending accountability for risk management.
- C. Providing assurance that risks are evaluated correctly.
- D. Supporting managers to identify ways to mitigate risks.
Answer: B
NEW QUESTION 38
Which of the following would have the least impact (either positive or negative) on an assessment of a department's control environment?
- A. Audit tests designed to verify compliance with control procedures detected a general failure to follow standard procedures for transaction authorization.
- B. The department manager sets a tone of honesty and integrity in all business dealings and this tone is emulated by department personnel.
- C. Many department functions were duplicated or verified by other department employees as part of the department's normal procedures.
- D. The department managed long-term investments, including investment in derivatives and other financial instruments, to maximize return.
Answer: D
NEW QUESTION 39
Which of the following statements is most likely to be true regarding a consulting engagement involving an organization's new payroll system?
- A. The internal auditor concluded that the engagement objectives would include assessing the effectiveness of the payroll process controls.
- B. The payroll system engagement was scheduled as a result of internal audit's risk-based annual planning process.
- C. The internal auditor and engagement client established an understanding that the scope would include the new payroll system project.
- D. The internal auditor acknowledged the engagement client's satisfactory performance in the final engagement results that were communicated to senior management and the board.
Answer: C
NEW QUESTION 40
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