QUESTION: 205

According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

Communication of any internal ethics violations to external parties may occur with appropriate safeguards.
Cultural impacts are less critical where the organization practices uniform polices around the globe.
Cross-cultural differences should always be handled by the staff of the same cultural background.
Local law enforcement should be involved as they are more familiar with the applicable local laws.

Answer(s): A

Reveal Solution Next Question

The chief audit executive of a medium-sized financial institution is evaluating the staffing model of the internal audit activity (IAA). According to IIA guidance, which of the following are the most appropriate strategies to maximize the value of the current IAA resources? · The annual audit plan should include audits that are consistent with the skills of the IAA. · Audits of high-risk areas of the organization should be conducted by internal audit staff. · External resources may be hired to provide subject-matter expertise but should be supervised. · Auditors should develop their skills by being assigned to complex audits for learning opportunities.

1 and 2 only
1 and 4 only
2 and 3 only
3 and 4 only

Answer(s): D

Reveal Solution Next Question

QUESTION: 207

It is close to the fiscal year end for a government agency, and the chief audit executive (CAE) has the following items to submit to either the board or the chief executive officer (CEO) for approval. According to IIA guidance, which of the following items should be submitted only to the CEO?