QUESTION: 105

Which of the following situations allows for the most objectivity on the part of an internal auditor?

Assessing testing procedures in a new computer system.
Performing a risk assessment of a new financial instrument.
Drawing conclusions from a sample of financial transactions.
Comparing current environmental activities against legislation.

Answer(s): D

After several years in the engineering department, an engineer was transferred to the internal audit department. One month later, the new auditor was assigned to an
assurance engagement for the engineering department. When the auditor's former engineering supervisor suggested a change in the sample selection method, the auditor consulted with the audit supervisor. They determined that the suggested method would not be as representative and that the original selection method should be used. In this situation, the auditor

Maintained an independent mental attitude and is therefore objective.
Has subordinated professional judgment, and objectivity is therefore impaired.
Does not have objectivity since the auditor recently transferred from the engineering department.
Does not have independent organizational status since the auditor recently transferred from the engineering department.

Answer(s): C

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QUESTION: 107

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

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

Answer(s): A

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QUESTION: 108

In order to exercise due professional care as defined in the International Professional Practices Framework, an internal auditor should

I). Consider the probability of significant noncompliance in each audit engagement.
II). Perform assurance procedures with sufficient care to ensure that all risks are identified.
III). Weigh the cost of assurance against the benefits.

I and II only.
I and III only.
II and III only.
I, II, and III.

Answer(s): B

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