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Download Essentials of Internal Auditing Exam Dumps

NEW QUESTION 35
Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management's decision is least plausible?

• A. Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.
• B. Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.
• C. Management may perceive that having quarterly financial information examined by the internal auditors enhances the information's value to internal decision making.
• D. Management may be concerned about its reputation in the financial markets.

Answer: A

Explanation:
Section: Volume E

NEW QUESTION 36
The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently.
Which common characteristics of fraud will the practice and policy most likely reduce?

• A. Opportunity.
• B. Commitment.
• C. Pressure or incentive.
• D. Rationalization.

Answer: D

NEW QUESTION 37
Which of the following would be most effective in determining if the percentage of medication orders containing errors improved after a hospital installed a computerized medication-tracking system?

• A. Compare the number of errors before and after system installation for similar periods.
• B. Compare the proportion of erroneous medication orders before and after system installation for similar periods.
• C. Compare, after adjusting for the number of patients, the proportion of erroneous medication orders before and after system installation.
• D. Compare, after adjusting for the number of patients, the number of errors before and after system installation for similar periods.

Answer: B

NEW QUESTION 38
Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?

• A. Observation.
• B. Surveys.
• C. Workshops.
• D. Interviews.

Answer: B

NEW QUESTION 39
The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance, which of the following qualitative metrics would be appropriate for the CAE to use?
1. Average client customer satisfaction score for a given year.
2. Client survey comments on how to improve the IAA.
3. Auditor interviews once an audit has been completed.
4. Percentage of audits completed within 90 days.

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

Answer: A

Explanation:
Section: Volume F

NEW QUESTION 40
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