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NEW QUESTION 50
Which of the following options describes the reason that conformance with The IIA's Code of Ethics is mandatory for internal auditors?

• A. Ethical compliance provides the basis for stakeholder trust and confidence in the validity of the profession of internal auditing and the internal audit activity's findings.
• B. The internal audit activity's ethical compliance sets the tone for the ethical compliance by the organization's board, management, and employees.
• C. Ethical compliance provides the basis for stakeholder confidence in the competence of the internal audit activity and of professional internal auditors.
• D. Ethical compliance is necessary for internal auditors and the internal audit activity to accept responsibility for providing absolute assurance about the organization's risk management.

Answer: A

NEW QUESTION 51
In which of the following scenarios is the internal auditor in conformance with The IIA's Code of Ethics and the Standards?

• A. The chief audit executive declines an assurance engagement in IT because the internal audit activity is not proficient in IT
• B. The auditor communicates an audit opinion on fraud risk during an audit engagement's preliminary fraud risk assessment
• C. The auditor testifies in front of a jury about an organization's fraudulent financial practices after receiving a subpoena
• D. Management has agreed to remedy a significant control deficiency, so the auditor excludes the deficiency from the engagement report

Answer: C

NEW QUESTION 52
Which of the following sources of evidence would be least persuasive regarding potential waste and inefficiency on the part of a contractor?

• A. An examination of the nature of contract expenses incurred.
• B. A comparison of contract expenses with those of similar projects.
• C. The contractor's certification that it has not incurred any waste or inefficiencies.
• D. A walk-through of the contractor's manufacturing and development facilities.

Answer: C

NEW QUESTION 53
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