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During a review of the payroll department, a payroll associate informs the internal auditor, in confidence, that a co-worker is under a great deal of personal stress and has made several uncharacteristic mistakes over the past few weeks. The payroll associate asks the auditor to be sympathetic to the co-worker when drafting the audit findings. If the auditor adjusts the audit findings in consideration of this request, which of the following IIA Code of Ethics principles would be violated?
An internal auditor wants to use computerized audit tools and techniques. Which of the following is a common obstacle that the auditor is likely to face?
Which of the following best describes the difference between inherent risk and residual risk?
A senior police officer was in charge of the cash fund used for undercover operations. In this situation, which of the following would likely be considered a red flag?
Which of the following interview techniques would be most effective in a fraud investigation?
Which of the following best demonstrates that appropriate and sufficient resources were allocated to an audit engagement to achieve its objectives?
Which of the following situations is most likely to require a compliance engagement from the internal audit activity?
Duties in a purchasing system are segregated and performed by different people. One person orders the goods, another person receives the goods, and another pays for the goods. This is an example of which of the following controls?
According to The IIA's Code of Ethics, which of the following best illustrates the principle of confidentiality?
An internal auditor is performing an internal control assessment at a manufacturing company. The auditor observed that the accounts payable clerks have the ability to create new vendors without management's review and approval. How should the auditor document this observation?
Information collected and documented in audit workpapers should be sufficient to:
An internal auditor was gathering information regarding the receiving process and decided that a narrative memorandum was the best way to document the process. Which of the following explanations best supports the auditor's decision?
Management requested that the chief audit executive (CAE) include an audit of the organization's health and safety program in next year's annual audit plan. However, the internal audit activity has no expertise in this area. Which of the following would be the most appropriate actions for the CAE?
In the absence of any action to control or modify the circumstances, the probability of loss arising from circumstances existing in an environment is known as which of the following types of risk?
During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization’s total budget. Which of the following best supports the auditor’srecommendation to reduce the level of reviews?
When is it appropriate for the internal auditor to determine the engagement's scope and objectives?
Which of the following scenarios would be the strongest indicator of fraud in an accounts payable process?
Which of the following best describes the knowledge, skills, and abilities that internal auditors should possess with regard to fraud?
Operational management has asked the internal auditor for recommendations regarding an ineffective process. According to IIA guidance, which of the following would be the auditor's most appropriate response?
Which of the following activities would compromise the independence of the internal audit activity and therefore should not be performed by an internal auditor?
What are the typical elements of a risk and control matrix used in the engagement planning process?
Which of the following would be the best indicator that the organization's risk management processes are operating effectively?
A newly hired internal auditor has been asked to examine the sales of a specific product over the last four years. Which of the following analytical review techniques should the auditor employ?
TESTED 21 Jan 2025