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NEW QUESTION 30
When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

A. Identifying risks to the organization's operations.B. Reviewing organizational objectives.C. Observing and analyzing controls.D. Prioritizing known risks.

Answer: B

Explanation:
Section: Volume B

 

NEW QUESTION 31
A chief audit executive (CAE) is planning to issue an annual report concluding on the overall effectiveness of the organization's internal control system. According to the Standards, which of the following is likely the most significant challenge facing the CAE when creating the report?

A. The opinion is only issued once a year, limiting its usefulness.B. Assessing control effectiveness is complicated by inherent risks.C. The opinion must include difficult to measure risks such as the risks of management override of controls, and collusion among dishonest personnel.D. The opinion is dependent on complex analyses of numerous internal audit engagements carried out over the prior year.

Answer: D

 

NEW QUESTION 32
Risk assessments are valuable to the internal audit activity's planning process because they assist in:

A. Eliminating all areas with low risk from the audit plan.B. Identifying risks that management and the internal auditors have overlooked.C. Educating management on the importance of keeping the internal audit activity informed of organizational changes.D. Identifying the audit universe or auditable activities that need to be reviewed.

Answer: D

 

NEW QUESTION 33
An organization has a policy requiring two signatures on all checks written for amounts in excess of $10,
000. When evaluating controls over disbursements, an auditor would conclude that a greater risk exists if.

A. The auditor located two checks for $9, 000 each that contained one authorized signature.B. The director of accounting was not one of the authorized signers.C. There were several instances in which successively numbered checks for amounts between $5, 000 and $10, 000 were made payable to the same vendor.D. The $10, 000 was an immaterial amount to the organization and very few cash disbursements required an amount in excess of $10, 000.

Answer: C

 

NEW QUESTION 34
According to IIA guidance, which of the following statements is false regarding continuing professional education for the internal audit activity (IAA)?

A. Specialized education that meets unique organizational needs cannot qualify as IAA professional development.B. Continuing professional education can be obtained through IAA involvement in research projects.C. Completion of self-study courses fulfills IAA continuing professional education requirements.D. Employers are responsible for ensuring that the continuing professional education needs of the IAA are met.

Answer: D

Explanation:
Section: Volume E

 

NEW QUESTION 35
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