QUESTION: 145

A former line supervisor from the Financial Services Department has completed six months of a two- year development opportunity with the internal audit activity (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department. Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?

She may participate, but only after she has completed one year with the IA
She may participate, because she did not previously work in the Human Resources Department.
She may participate, but she must be supervised by the auditor in charge.
She may participate for training purposes, to build her knowledge of the IAA.

Answer(s): B

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QUESTION: 146

A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?

Preparing the financial statements for the company's defined contribution plan.
Performing a pre-implementation review of the company's payroll application.
Providing the COBIT framework as a possible IT management tool.
Reviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.

Answer(s): A

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QUESTION: 147

According to IIA guidance, which of the following is least compliant with the requirements regarding an internal auditor's need for objectivity?

An internal auditor assessed the effectiveness of controls over payroll software, which he had helped implement with a previous employer.
An internal auditor participated in an audit of controls around absenteeism, despite providing some consultation on controls in this area earlier in the year.
An internal auditor performed an assurance engagement for the effectiveness of accounts payable access controls, one of which he previously helped to design.
An internal auditor, previously employed in the quality assurance operations area, performed a consulting engagement for the operations manager.

Answer(s): C

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QUESTION: 148

Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.

Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?

1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.
2. Experience of the engineer in the type of work being considered.
3. Compensation or other incentives that the engineer may receive.
4. The extent of other ongoing services that the engineer may be performing for the organization.

1and4only
2and3only
3and4only
1, 2, and 4 only

Answer(s): D

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QUESTION: 148