Free CIA Exam Braindumps (page: 26)

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According to the Standards, which of the following should be defined in the internal audit charter?

I). The internal audit activity's position within the organization.
II). The audit activities to be performed during the upcoming year.
III). The scope of internal audit activities.
IV). Management and the board of directors' agreement regarding the roles and responsibilities of the internal audit activity.

  1. I and IV only.
  2. II and III only.
  3. I, III, and IV only.
  4. I, II, III, and IV.

Answer(s): C



Which of the following would not compromise an internal auditor's objectivity?

  1. Preparing bank reconciliations.
  2. Reviewing procedures before they are implemented.
  3. Auditing an activity for which the auditor had responsibility in the past year.
  4. Providing both advisory services and audit services for a project.

Answer(s): B



The most important reason for the chief audit executive to ensure that the internal audit department has adequate and sufficient resources is to

  1. Ensure that the function is adequately protected from outsourcing.
  2. Demonstrate sufficient capability to meet the audit plan requirements.
  3. Establish credibility with the audit committee and management.
  4. Fulfill the need for effective succession planning.

Answer(s): B



If a department outside of the internal audit activity is responsible for reviewing a function or process, the internal auditors should

  1. Consider the work of the other department when assessing the function or process.
  2. Not consider the work of the other department and proceed with an independent audit.
  3. Reduce the scope of any audit of the function or process because a review has already been performed by the other department.
  4. Delegate the responsibility for assessing the function or process to the other department.

Answer(s): A






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