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NEW QUESTION 53
Which of the following would be considered a violation of The IIA's mandatory guidance on independence?

A. The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit activity.B. The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer.C. The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline.D. The board seeks senior management's recommendation before approving the annual salary adjustment of the CAE.

Answer: D

 

NEW QUESTION 54
An internal auditor completed an audit of a bank's loan department and found all significant risks to be managed adequately through effective internal controls. Which of the following would be an appropriate conclusion to report to management?

A. The residual risk is lower than or equal to the risk appetite.B. The residual risk is higher than or equal to the risk appetite.C. The inherent risk is higher than or equal to the risk tolerance.D. The inherent risk is lower than or equal to the risk tolerance.

Answer: A

 

NEW QUESTION 55
An internal audit activity (IAA) provided assurance services for an activity it was responsible for during the preceding year.
As a result, which IIA Code of Ethics principle is presumed to be impaired?

A. Independence.B. Competence.C. Flexibility.D. Objectivity.

Answer: D

 

NEW QUESTION 56
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