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NEW QUESTION 32
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 a team under the direction of the organization's chief audit executive, and obtaining validation from a former manager of the internal audit activity.D. Using the same external service provider because of its competency and experience with the organization.

Answer: A

 

NEW QUESTION 33
In an assurance engagement of treasury operations, an internal auditor is required to consider all of the following issues except:

A. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.B. Treasury management has not instituted any risk management policies.C. The external auditors have indicated some difficulties in obtaining account confirmations.D. The audit committee has requested assurance on the treasury department's compliance with a new policy on the use of financial instruments.

Answer: C

 

NEW QUESTION 34
According to IIA guidance,which of the following are considerations of due professional
care when an internal auditor conducts a formal consulting engagement?
1.The complexity of the work required.
2.The needs and expectations of the client.
3.The potential value of the engagement compared to the effort.
4.Information regarding assumptions and procedures to be employed.

A. 2 and 3 onlyB. 1,2,and 3 onlyC. 1,2,3,and 4D. 1 and 4 only

Answer: B

 

NEW QUESTION 35
According to IIA guidance, which of the following statements is true regarding periodic internal assessments of the internal audit activity?

A. Internal assessments are conducted to benchmark the internal audit activity's performance against industry best practices.B. An internal auditor may perform a peer review of a colleague's workpapers, as long as the auditor wasn't involved in the audit under review.C. Internal assessments must be performed at least once every five years by a qualified assessor.D. Follow-up to ensure appropriate improvements are implemented is a recommended, but not mandatory, element of internal assessments.

Answer: B

 

NEW QUESTION 36
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts.
Which of the following would most likely be the reason for the high volume of complaints?

A. Submission of fraudulent expense reports.B. An ineffective customer service department.C. Poor controls in the invoice approval processes.D. Check tampering by an employee.

Answer: D

 

NEW QUESTION 37
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