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NEW QUESTION 28
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?

A. Inquiry.B. Observation.C. Document verification.D. Analytical review.

Answer: D

 

NEW QUESTION 29
According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?

A. Board of directors.B. Internal audit activity.C. Senior management.D. All employees.

Answer: A

 

NEW QUESTION 30
After being terminated due to downsizing, an internal auditor finds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?

A. In preparing for an audit at the previous organization, the auditor had conducted a great deal of research on the Internet at home to identify best practices for the management of a treasury function. The auditor has retained much of the research and uses it to conduct an audit of the new employer's treasury function.B. To determine audit priorities in the new job, the auditor uses the audit risk approach that the auditor's previous employer used, without receiving permission to do so.C. In the first week at the new organization, the auditor discovers a high fraud risk surrounding the organization's database and suggests that the information technology department implement a new password system to prevent fraudulent actions before they occur.D. At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.

Answer: D

 

NEW QUESTION 31
In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?

A. There is no expertise within the internal audit team for auditing an IT engagement.B. The CAE would need to procure external services to deliver the internal audit assurance program.C. There is no expertise within the internal audit team for detecting and investigating fraud.D. There is no available expertise on the internal audit team to perform a consulting engagement.

Answer: C

 

NEW QUESTION 32
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