QUESTION: 189

According to IIA guidance, organizations have the most influence on which element of fraud?

Opportunity.
Rationalization.
Pressure.
Incentives.

Answer(s): A

The external auditor has identified a number of production process control deficiencies involving several departments. As a result, senior management has asked the internal audit activity to complete internal control training for all related staff. According to IIA guidance, which of the following would be the most appropriate course of action for the chief audit executive to follow?

Refuse to accept the consulting engagement because it would be a violation of independence.
Collaborate with the external auditor to ensure the most efficient use of resources.
Accept the engagement but hire an external training specialist to provide the necessary expertise.
Accept the engagement even if the audit engagement staff was previously responsible for operational areas being trained.

Answer(s): D

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QUESTION: 191

Which of the following is not a primary reason for outsourcing a portion of the internal audit activity?

To gain access to a wider variety of skills, competencies and best practices.
To complement existing expertise with a required skill and competency for a particular audit engagement.
To focus on and strengthen core audit competencies.
To provide the organization with appropriate contingency planning for the internal audit function.

Answer(s): D

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QUESTION: 192

Which of the following statements about internal audit's follow-up process is true?

The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.
The actions of external auditors and other external assurance providers is not encompassed by internal audit's follow-up process.
Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.
The follow-up process must be complete and documented in the working papers in order to conclude the engagement.

Answer(s): C

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