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NEW QUESTION 43
Some lime after the final audit report was issued, the engagement supervisor teamed that several internal control deficiencies were not remedied, despite management's previous agreement to remedy them According to IIA guidance, which of the following is the most appropriate response'5

• A. The engagement supervisor should rely on his negotiation skills and issue an ultimatum to management to remedy the control deficiencies
• B. The engagement supervisor must notify the chief audit executive (CAE) that the deficiencies have not been rectified
• C. Ensure that these deficiencies are captured in the documentation as high-priority areas to be reviewed during the next audit.
• D. The engagement supervisor should rely on professional judgment as to whether the CAE should be informed, or the management action plan should be adjusted

Answer: B

NEW QUESTION 44
The internal auditor's opinion in terms of due professional care should be:

• A. Based on experience and free of all bias.
• B. Based on sufficient factual evidence.
• C. Limited to the effectiveness of internal controls.
• D. Expressed only when consensus with top management has been achieved.

Answer: B

Explanation:
Section: Volume C

NEW QUESTION 45
A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive but performs no further follow-up. The auditor's actions woulD.
I.
Be in violation of the IIA Code of Ethics for withholding meaningful information.
II.
Be in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.
III.
Not be in violation of either the IIA Code of Ethics or Standards.

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

Answer: C

NEW QUESTION 46
If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?

• A. Variables sampling.
• B. Discovery sampling.
• C. Attributes sampling.
• D. Targeted sampling.

Answer: B

Explanation:
Section: Volume A

NEW QUESTION 47
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