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NEW QUESTION 27
According to The IIA's Code of Ethics, which of the following statements is true?

• A. When an internal auditor disagrees with the treatment received by workers in the organization's foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.
• B. When an internal auditor continues with an audit engagement, despite the audit client's claims that the work performed is unnecessary and redundant he fails to demonstrate competency.
• C. When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.
• D. When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.

Answer: A

NEW QUESTION 28
Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?

• A. So that the individual objectivity of the internal audit staff can be more clearly established.
• B. So that there is assurance of the internal audit staff's proficiency to complete audit activities.
• C. Because management requires the review to measure effectiveness of the internal audit activity.
• D. Because changes in the organization may impair the internal audit activity's ability to meet its objectives.

Answer: D

NEW QUESTION 29
Which of the following describes a key characteristic related to effective organizational communication?

• A. Comprehensive supervisory and verification procedures.
• B. A well-designed system of internal controls.
• C. A culture of integrity and transparency.
• D. Unique operating environments with varying complexity.

Answer: B

NEW QUESTION 30
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