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NEW QUESTION 40
If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

• A. Terminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.
• B. Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.
• C. Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.
• D. Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

Answer: D

NEW QUESTION 41
A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?

• A. Assist management in implementing recommended control improvements.
• B. Continuously monitor the organization's overall risk activities in relation to its risk appetite.
• C. Evaluate the adequacy and effectiveness of the organization's governance activities.
• D. Oversee the establishment and administration of an effective risk management program.

Answer: D

NEW QUESTION 42
According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?
1. The complexity of the work required.
2. The needs and expectations of the client.
3. The potential value of the engagement compared to the effort.
4. Information regarding assumptions and procedures to be employed.

• A. 1 and 4 only
• B. 1, 2, and 3 only
• C. 1, 2, 3, and 4
• D. 2 and 3 only

Answer: B

NEW QUESTION 43
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