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NEW QUESTION 44
According to IIA guidance, which of the following should be included in the internal audit charter?

• A. Identification of the organizational units where engagements are to be performed.
• B. Organizational relationships and reporting lines.
• C. The minimum resources and competencies needed for the internal audit activity.
• D. Assigned responsibilities for designing and implementing controls.

Answer: B

NEW QUESTION 45
Which of the following is most likely to enhance an internal auditor's objectivity?

• A. An auditor is appropriately able to communicate results.
• B. An auditor avoids conflicts of interest.
• C. An auditor performs his work free from interference.
• D. An auditor is unrestricted in determination of scope.

Answer: B

NEW QUESTION 46
An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

• A. Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.
• B. Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.
• C. Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.
• D. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

Answer: D

NEW QUESTION 47
Which of the following describes a key characteristic related to effective organizational communication?

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

Answer: B

NEW QUESTION 48
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