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NEW QUESTION 26
Which of the following actions by a chief audit executive is most likely to prevent exaggerated sales reports by division management?
I.Hire a new internal auditor who has fraud investigation credentials.
II.
Assist the controller in developing and monitoring a series of business process indicators which are historically correlated with, but independent of, sales.
III.
Announce a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.
IV.
Ask the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting.

  • A. I and II only.
  • B. III and IV only.
  • C. II and III only.
  • D. I, II, III, and IV.

Answer: B

 

NEW QUESTION 27
To assure that the technical proficiency of internal auditors is appropriate for the audit engagements to be performed, a chief audit executive should:

  • A. Oversee a training program that matches the actual training provided with the interests of individual auditors.
  • B. Require all of the audit staff to pursue a minimum number of continuing professional education hours each year.
  • C. Consider the scope of work and level of responsibility when establishing criteria for education and experience in filling internal auditing positions.
  • D. Ensure that each newly hired auditor is qualified in all of the disciplines needed to accomplish the department's audit mission.

Answer: C

 

NEW QUESTION 28
While attending a conference,an internal auditor won an all-expense paid trip sponsored by a vendor of the internal auditor's organization.
Which of the following actions are most appropriate for the auditor to take?

  • A. Consult with an immediate supervisor and notify the organization's audit committee.
  • B. Consult with an immediate supervisor and review the organization's ethics policy.
  • C. Give the prize to a friend or family member and review the organization's ethics policy.
  • D. Give the prize to a friend or family member and notitfy the organization's audit committee.

Answer: B

 

NEW QUESTION 29
According to the Standards, the organizational status of the internal audit activity:

  • A. Requires the board's annual approval of the audit schedules, plans, and budgets.
  • B. Is guaranteed when the charter specifically defines its independence.
  • C. Is best when the reporting relationship is direct to the board of directors.
  • D. Must be sufficient to permit the accomplishment of its audit responsibilities.

Answer: D

 

NEW QUESTION 30
......

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