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NEW QUESTION 24
In preparing to facilitate a control self-assessment session, an auditor would be least likely to ensure that:

A. Key stakeholders are represented in the group.B. An independent content expert is available to help settle disagreements.C. Background research is completed to familiarize the auditor with relevant issues.D. Management is consulted on the issues and priorities.

Answer: B

 

NEW QUESTION 25
The audit committee has asked the chief audit executive (CAE) to conduct an ad hoc forensic investigation of the purchasing department within a month due to the significance and urgency of a recently discovered risk The internal audit activity currently has no available staff with relevant experience or qualifications Which of the following is the CAE's best option for fulfilling the internal audit activity's responsibilities in this case?

A. Decline the engagement at this timeB. Select certain internal auditors and remove them from their current assignments so that they can begin a forensic investigation courseC. Outsource the investigation to independent professional consultantsD. Recruit additional internal auditors possessing relevant qualification and experience

Answer: A

 

NEW QUESTION 26
An internal auditor provided the following statement about division A's performance during the month:
"Because supplies of raw material X were scarce, division A's profits declined by 15 percent." Which of the following can be validly concluded from the auditor's statement?
I. Division A's production level declined by 15 percent.
II. Division A could have sold more products than it produced.
III. Division A usually sells all of the products that it produces.

A. I and II onlyB. II onlyC. III onlyD. I only

Answer: B

Explanation:
Section: Volume A

 

NEW QUESTION 27
A limitation of using ratio analysis in an audit engagement is that it:

A. Is an expensive method of testing.B. Is useful only when comparisons can be made across other industries.C. Requires computer software in order to develop meaningful interpretations of data.D. Often uses financial information provided by management which has not been reviewed for reliability and validity.

Answer: D

 

NEW QUESTION 28
Which of the following statement is consistent with IIA guidance the use of mentoring for internal auditors?

A. The mentor relationship is usually not suitable for internal audit staff, as it does not leas to professional development.B. The value of mentoring is derived primarily from the personal relationship between the two parties involved, and the mentor's level of relevant experience should not be a key factor.C. The mentor should be the internal auditor's supervisor to ensure that the auditor performance is assessed in a relevant and meaningful context.D. The member and the internal auditor should opt for informal meetings even if it means that no formal documentation will be created.

Answer: C

 

NEW QUESTION 29
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