QUESTION: 69

The director of purchasing, a certified internal auditor (CIA), signs a contract to procure a large order from a supplier whose products provide the best price, quality, and performance. A few days after signing the contract, the supplier presents the CIA with $1, 000 as a gift. Which statement regarding acceptance of the money is correct?

Accepting the money would be prohibited only if it were non-customary.
Accepting the money would violate the IIA Code of Ethics.
Because the CIA is not acting as an internal auditor, accepting the money would be governed only by the organization's code of conduct.
Because the contract was signed before the money was offered, accepting the money would not violate the IIA Code of Ethics.

Answer(s): B

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QUESTION: 70

According to IIA guidance, which of the following statements regarding the internal audit charter is true?

Senior management should approve the charter before it is submitted to the board.
The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.
The charter should define the consulting services that the internal audit activity is permitted to perform.
The CEO periodically should assess whether the terms of the charter continue to be adequate.

Answer(s): A

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QUESTION: 71

Which of the following does not need to be defined in the internal audit charter?

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

Answer(s): A

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QUESTION: 72

A government agency's policy states that board members' travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?

The government's independent auditor.
The external auditors from an accounting firm.
The internal audit activity.
The agency's chief compliance officer.

Answer(s): A

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