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NEW QUESTION 27
Which of the following activities should the chief audit executive perform to ensure compliance with an organization's code of conduct?

• A. Review and adjudicate all violations of the code of conduct.
• B. Act as an adviser to the committee responsible for reviewing violations of the code.
• C. Lead the committee responsible for the oversight of the code.
• D. Implement a system of procedures to inform all employees of the code.

Answer: B

NEW QUESTION 28
The chief audit executive (CAE) has been asked to manage the regulatory compliance function for the organization's retail store operations. Store operations are included in the annual audit plan.
Which of the following strategies best fulfills the requirements of the Standards regarding these audits?

• A. Store operations audits can be fully executed with appropriate disclosure to the board.
• B. The scope of store operations audits should exclude compliance.
• C. Store operations audits should be performed by an external service provider.
• D. A store operations compliance audit should be performed by a staff internal auditor under the direction of the CAE.

Answer: C

NEW QUESTION 29
Which of the following would not be a factor for senior management to consider when determining the internal audit activity's role in an organization's risk management process?

• A. The nature of the business and the environment in which the organization operates.
• B. The competency of the internal auditors in risk management.
• C. The extent to which the internal audit activity is outsourced.
• D. The maturity level of risk management practices in the organization.

Answer: C

NEW QUESTION 30
Internal auditors who are concerned with potential risks due to the mishandling of records or transactions should take into consideration:

• A. Whether employees in key positions of trust are bonded.
• B. The type and nature of the activities to be examined.
• C. The history of losses suffered by the company.
• D. The results of prior risk assessments.

Answer: B

NEW QUESTION 31
In selecting an instructional strategy for developing internal audit staff, a chief audit executive should first review the:

• A. Content of potential training courses.
• B. Department's budget constraints.
• C. Organization's objectives.
• D. Internal auditors' personal development needs.

Answer: C

NEW QUESTION 32
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