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NEW QUESTION 27
Which of the following actions by the internal audit activity provides strong evidence that it is organizationally independent?

A. It reviews engagement results for evidence of undue influence before releasing the final report.B. It maintains direct interactions with the audit committee or board.C. It releases an approved internal audit charter stating that the internal audit activity is independent.D. It requires all internal audit staff to sign annual non-disclosure and potential conflict of interest statements.

Answer: B

Explanation:
Section: Volume C

 

NEW QUESTION 28
Which of the following best demonstrates the board of directors' governance over internal control?

A. The board may be assisted by an audit committee, chaired by the chief audit executive.B. The board is responsible for succession planning for the CEO and other key members of the executive management team.C. The board bears direct responsibility for developing and implementing the internal control system.D. The majority of board members are experienced and qualified members of the organization's executive management team.

Answer: B

 

NEW QUESTION 29
Which of the following statements regarding segregation of duties is true?

A. When evaluating an organization's policy on segregation of duties, employee competence does not need to be considered.B. An organizational chart provides an accurate definition of segregation of duties.C. A restrictive segregation-of-duties policy can help improve an organization's communication.D. Policies on segregation of duties in information systems must recognize the difference between logical and physical access to assets.

Answer: D

 

NEW QUESTION 30
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?

A. The time commitment to complete.B. The size of internal audit department under review.C. The lack of independence and objectivity.D. The inability to adequately fund the program.

Answer: D

Explanation:
Section: Volume D

 

NEW QUESTION 31
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