Online IIA-CIA-Part1 Exam Dumps Help You Build Confidence

1. Which of the following controls would best mitigate the risk of fraud in the bidding process?

2. According to IIA guidance, a new internal auditor is expected to possess which of the following competencies?

3. According to IIA guidance, which of the following is the most accurate statement regarding the internal audit charter?

4. In an environment where employees are frequently penalized for mistakes and the organizational culture is one of fear and blame which of the following is an internal auditor most likely to find?

5. What should be the first step for a newly hired chief audit executive to build and maintain the proficiency of the internal audit activity?

6. Which of the following is the best way for an internal auditor to demonstrate due professional care?

7. Which of the following process weaknesses is most likely to cause an internal auditor the most concern about fraud risk?

8. An organization is considering purchasing a new banking software system and has asked the internal audit activity to evaluate the system. An internal auditor assigned to perform the engagement worked at the software company two years ago and is familiar with the system's design strengths and weaknesses.

Which of the following is true regarding impairment to the auditor's objectivity?

9. Which of the following statements best illustrates why internal auditors assess soft controls?

10. Which of the following is an example of an application control?

11. Which of the following is an appropriate role for the internal audit activity?

12. During an assurance engagement, an internal auditor reviews a tender inviting vendors to submit bids to supply financial services software to the organization. She suspects that the tender was tailored for the bidder who eventually won the contract.

What should the auditor do next?

13. Which of the following can be used to minimize employees’ resentment of controls?

14. An internal auditor is trying to evaluate what could go wrong after determining that a risk management technique is operating effectively.

What type of risk is the auditor assessing?

15. According to The IIA’s Code of Ethics, which of the following best describes the principle of integrity?

16. Which of the following most accurately describes corporate social responsibility at an organization?

17. Which of the following describes the most appropriate match between a potential temporary guest auditor candidate and an upcoming audit assignment?

18. An internal auditor is providing consulting services on an area he was responsible for three years ago. Part of the consulting scope covers a review of a performance measuring system that the auditor helped to develop.

What is the best course of action for the auditor to take concerning the consulting service?

19. Which of the following is the primary benefit of an effective professional development program for internal auditors?

20. To achieve conformance with the Standards, the chief audit executive must include which of the following activities in the quality assurance and improvement program (QAIP)?

21. Which of the following would the internal audit activity do first if fraud is suspected during an audit engagement?

22. Which of the following statements is true regarding an organization's code of ethics?

23. Which of the following scenarios best demonstrates the application of internal audit proficiency?

24. Which of the following best illustrates the principle of due professional care?

25. What is the ultimate goal of establishing a robust risk management framework in an organization?

26. According to NA guidance, which of the following provides the best evidence of conformance with the Standards with respect to the proficiency required of the internal audit activity?

27. When performing an audit of the risk management process an auditor makes the observations listed below.

Which poses the greatest risk to the organization?

28. Which of the following preventive controls would be most effective for organizations facing business disruptions and respective financial losses?

29. When a plant manager from within the organization is hired as a rotational internal auditor within the internal audit activity which area should he most likely be trained for immediately?

30. Which of the following skills is most important for an internal auditor who facilitates control self-

assessment workshops to possess?

31. An internal auditor is reviewing employee travel expenses from the previous six months for fraud.

Which of the following tests would best detect instances where personal travel has been claimed?

32. The chief audit executive (CAE) decided to conduct a self-assessment with independent validation.

Which of the following is the most likely reason the CAE selected this course of action?

33. The internal audit activity is responsible for conducting fraud investigations. A potential fraud instance was identified during an audit engagement. The chief audit executive appoints a lead investigate.

Which of the following would most likely be the next step?

34. Which of the following actions best demonstrates an internal auditor exercising due professional care?

35. Which of the following is a typical characteristic of an organization's risk management framework?

36. A business unit manager was impressed by the competence of the internal auditor who was conducting an assurance engagement in his area and the manager made the auditor an attractive job offer to begin after the audit was completed. The auditor later told her auditor in charge that she was considering the offer.

Which of the following IIA Code of Ethics principles was most likely violated?

37. Anew internal auditor suspects fraud is taking place.

Which action should the new auditor take?

38. According to IIA guidance, the internal audit activity must be free from interference in which of the following areas in order to maintain organizational independence?

39. Which of the following actions does a competency assessment tool help the chief audit executive perform?

40. Which of the following statements best describes the difference between risk appetite and risk tolerance?

41. Which of the following constitutes an example of a control designed to prevent an undesired activity from happening?

42. The internal auditor of a small manufacturer noted that the accounting department has insufficient staff to achieve proper segregation of duties.

What type of controls would the auditor likely recommend to management to specifically address this problem?

43. To assure that the technical proficiency of internal auditors is appropriate for the audit engagements to be performed, a chief audit executive should:

44. Which of the following represents a deficiency in the control environment?

45. With regard to organizational governance assurance, which of the following is an appropriate role for the internal audit activity'?

46. A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics.

Which of the following organizationwide practices is most likely to be acceptable to the CAE?

47. In an assurance engagement focused on the adequacy of organization wide risk management practices, which of the following best describes a primary area of interest for the engagement?

48. The internal audit activity is asked to provide consulting services regarding the risks related to implementing a proposed new Inventory management system.

Which of the following would be a key consideration of the internal audit activity in accepting this engagement?

49. An internal audit activity is taking steps to promote professional development among the staff, and is in the process of implementing a mentorship program.

According to HA guidance, which of the following is important for a successful mentorship program?

50. Which of the following situations would best indicate to the chief audit executive that one of the audit team members is struggling with application of due professional care?

51. According to NA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?

52. Which of the following practices, applied by the chief audit executive {CAE), most likely indicates an effective continuing professional educational program for the internal audit activity?

53. Which of the following is most likely to impair the internal audit activity's independence?

54. Which of the following best describes the risk contained in an initial public offering for a new stock?

55. A chief audit executive (CAE) was asked by senior management to establish and manage a risk management function. A new chief risk officer was hired a year later to assume these responsibilities. As this function was included in the current annual audit plan, the CAE engaged an external resource for a risk management engagement.

Which of the following potential threats to objectivity was the CAE likely addressing?

56. Which of the following is most likely to impair the organizational independence of the internal audit activity?

57. Which of the following parties would be responsible for ongoing monitoring of the organization's corporate social responsibility activities to reduce its carbon footprint?

58. Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?

59. Which of the following statements is true regarding a small internal audit activity with limited resources demonstrating due professional care?

60. During an assurance engagement, an internal auditor uses benchmarking research to support preparation of a report to stakeholders that contains significant findings about control deficiencies.

Which of the following skills did the auditor demonstrate?

61. An engagement supervisor is overseeing a procurement assurance engagement. In the middle of the engagement, the engagement supervisor attends a weekend social event paid for by the head of procurement.

Which of the following ethics principles is the engagement supervisor potentially violating by attending the event?

62. Which of the following best describes a consulting engagement rather than an assurance engagement?

63. According to IIA guidance, which of the following is a required aspect of an internal audit charter?

64. According to IIA guidance, which of the following is an appropriate role for the internal audit activity?

65. Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

66. According to IIA guidance, which of the following statements is true regarding ISO 31000?

67. A chief audit executive (CAE) is currently employed at a commercial bank where she was previously the chief compliance officer over three years ago. The current chief compliance officer abruptly resigned prior to the start of a mandatory anti-money laundering compliance audit. The board is contemplating a number of alternatives regarding the vacant post, bearing in mind that the bank has been struggling financially and is looking to contain costs.

Which of the following alternatives, if taken by the board, would be most appropriate to satisfy the bank's objectives as well as preserve the internal audit activity's independence?

68. The CAE may consider performing a self-assessment with independent external validation in Iieu of performing a full external assessment

69. According to NA guidance, which of the following conditions would enhance the independence of the internal audit activity?

70. Which of the following statements is most likely to be true regarding a consulting engagement involving an organization's new payroll system?

71. Which of the following is a control that is used mainly to check the integrity of data entered into a business application, whether the data is entered directly by staff, remotely by a business partner, or through a web-enabled application?

72. Which of the following is the best example of an ongoing independent monitoring activity?

73. Which of the following best describes why a chief audit executive might obtain the services of a fraud specialist to assist in a major fraud investigation'?

74. Which of the following is true with regard to an organization's risk management practices?

75. Which of the following best describes the Standards requirement for collective proficiency of the internal audit activity?

76. Which of the following is a detective control strategy against fraud?

77. Which of the following types of policies best helps promote objectivity in the interna! audit activity's work?

78. Which of the following best describes the approach the internal audit activity should take to assess and make appropriate recommendations to improve the organization?

79. According to IIA guidance, which of the following would be the most appropriate to help a new internal auditor understand the nature and positioning of the internal audit activity within his organization?

80. Which data analytics competency is critical for new internal auditors to possess in order to plan and perform internal audit engagements in conformance with the Standards?

81. According to IIA guidance, which of the following would be included in an internal audit charter to help establish the authority of the internal audit activity?

82. Senior management and the board have expressed concerns about the length of engagements and whether their outcome aligns with the organization's strategies and objectives.

Which of the following actions, if taken by the chief audit executive, could address these concerns?

83. According to IIA guidance, which of the following best demonstrates due professional care?

84. According to the Standards, in today's technology and business environments, how much computer and information systems-related knowledge and skills must an internal auditor have to be effective in fulfilling his job responsibilities?

85. At a conference, an interna! auditor presented a new computer-assisted audit technique developed by his organization. The presentation included sample data derived from performing audit engagements for the organization. Travel costs were paid by the conference organizers, and the trip was approved by the chief audit executive (CAE).

However, neither management nor the CAE was aware that the internal auditor would be making a

presentation based on work completed for the organization.

According to IIA guidance, which of the following statements is most relevant regarding the actions of the auditor?

86. During an audit of a foreign subsidiary an internal audit team discovered that products were sold to a prohibited country due to sanctions.

What is the best course of action for the internal audit team?

87. The chief audit executive (CAE) has decided to outsource an audit of the organization's cloud governance in the annual audit plan.

Why would the CAE outsource this audit?

88. Which of the following situations is most likely to threaten the independence of the internal audit activity?

89. Which of the following statements is true regarding consulting and assurance engagements performed by the internal audit activity?

90. Which of the following is the best example of a computer forensic audit activity?

91. As part of a fraud investigation by regulators, a court order was issued to a bank. The court order requested the chief audit executive (CAE) to provide access to a number of audit reports and workpapers, some of which included customers' confidential information such as transaction activity and other personal details.

What is the appropriate response by the CAE?

92. According to IIA guidance, which policy, established by the chief audit executive, would most likely ensure internal audits are conducted with due professional care?

93. Which risk management activity would cause the internal auditor to assume a management responsibility?

94. Which of the following represents an example of an ethical issue that the organization should address?

95. Which of the following scenarios demonstrates an impairment to internal audit independence?

96. An audit engagement required that an internal auditor, using available tools, test a transaction population for a period The auditor decided to test a sample of transactions rather than the full population.

Results of the audit were reported as satisfactory to management. Subsequent to the audit report, fraud was discovered in the area audited and was found to include transactions that were in the relevant transaction population not tested by the auditor. The auditor later disclosed that he decided to test a sample because it was representative of the population and facilitated quicker testing.

Which of the following skills below, if improved, would most likely have prevented this situation?

97. Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?

98. Which of the following statements is true regarding management's use of judgement to design, implement, and conduct internal control?

99. Which of the following organizations is adopting an acceptance technique in terms of its risk response?

100. An internal auditor has suspicions that some fictitious vendors have been created in the organization's computer system.

Which of the following would be the best technique to detect this fraud?

101. A fraud investigation was completed by management, and a proven fraud was communicated to relevant authorities.

According to IIA guidance, which of the following roles would be most appropriate for the internal audit activity to undertake after the investigation?

102. What is the best course of action when the internal audit activity does not have the knowledge necessary to perform a planned audit of the organization's new IT data backup process?

103. Which of the following threatens internal audit objectivity'?

104. Which of the following survey questions would be most effective to identify ethics violations within the organization?

105. Which of the following fraud schemes is often an off-book fraud*?

106. Internal controls belong to which risk response category?

107. Which of the following situations presents the lowest risk of impairing an internal audit activity's independence?

108. Which of the following is a preventive control the organization could implement to mitigate fraudulent activity in the accounts payable department?

109. A telecommunications organization is planning to cease operations in one or the markets in which it operates due to increasing volatility and uncertainties.

Which of the following risk management techniques is the organization selecting?

110. Which of the following is an indicator of ineffective third-party risk management?

111. According to IIA guidance, which of the following statements is true of assurance services provided by the internal audit activity?

112. It facilitates the alignment of risk mitigation strategies with management priorities.

113. According to the 11A Code of Ethics, which of the following is required with regard to communicating results?

114. Which of the following is (he most effective way any organization can ensure proper governance over its internal controls?

115. An organization's board recommends revising the internal audit charter by adding requirements regarding the hiring and compensation of the chief audit executive as well as information on approving the internal audit budget.

Which of the following is the board most likely defining in the charter?

116. Which of the following accurately describes the concept of inherent risk?

117. Senior management relies on the professional judgment of an internal auditor and uses outcomes of her audit work to make business decisions.

Which of the following personal qualities displayed by the internal auditor is most likely the foundation for this relationship?

118. An internal auditor is reviewing employee travel expenses from the previous six months for fraud.

Which of the following tests would best detect instances where personal travel has been claimed?

119. A newly hired chief audit executive is reviewing available documentation to provide evidence of conformance with the standard for continuing professional development.

Which of the following documents is the most reliable source for this purpose?

120. According to IIA guidance, which of the following statements is true regarding the internal audit activity’s responsibilities in providing consulting services?

121. Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department.

Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?

122. While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative.

Which course of action should the auditor take?

123. In which of the following scenarios would it be appropriate for the chief audit executive (CAE) to report that the internal audit activity conforms with the Standards?

124. An accounts payable clerk has recently transferred into the internal audit activity and has been assigned to an engagement related to accounts payable processes for which he was previously responsible.

Which of the following is the best action for the new internal auditor to take?

125. Which of the following internal controls best mitigates the risk of corruption schemes between employees and vendors?

126. A chief audit executive ensures that the internal audit activity provides annual training to management on internal controls.

Where is the nature of these services defined?

127. Which of the following best describes a consulting engagement rather an assurance engagement?

128. An experienced internal auditor is planning an assurance engagement of the organization's sales activities. During process walkthroughs and interviews, many sales representatives expressed concerns about management's escalating demands to meet the organization's sales goals.

According to the MA guidance, which of the following is the best application of due professional care in planning the engagement?

129. Which of the following actions would an internal auditor perform primarily during a consulting engagement of a debt collections process?

130. Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence.

Which of the following is the internal auditor's most appropriate next step?

131. Which of the following statements is true regarding electronic funds transfer (EFT)?

132. Which of the following statements represents the most appropriate correlation between an

organization's risk maturity and the internal audit activity’s consulting role in risk management processes?

133. Which of the following should be implemented to promote independence of the internal audit activity?

134. A significant number of employees expressed concerns of a hostile work environment within a large manufacturing plant, which is in contrast to the organization's stated culture of tolerance and open communication.

Which of the following approaches would be most effective for an internal auditor to assess whether the organization supports a culture of tolerance and open communication?

135. Which of the following needs to be established prior to undertaking an assessment of the quality assurance and improvement program?

136. Which type(s) of assessments in an internal audit activity’s quality assurance and improvement program requires ongoing monitoring to evaluate internal audit activity's efficiency and effectiveness?

137. Which of the following scenarios best illustrates the Fraud Triangle component known as "perceived opportunity"?

138. Which of the following statements is true with regard to services provided by the internal audit activity?

139. Review the professional development plans of internal audit staff to ensure all are competent to assess the organization's risk assessment activity.

140. Which of the following frauds is most likely to occur in the accounts payable function?

141. A manufacturer of power tools is experiencing regular fluctuations in the price of electrical power which is having a serious impact on the bottom line.

Which of the following would be the most effective risk strategy to reduce the impact of these fluctuations?

142. Which of the following is true regarding internal audit role's in The IIA's Three Lines Model?

143. Which should the internal auditor first consider when assessing fraud risks during an engagement?

144. Which of the following is an example of the chief audit executive (CAE) demonstrating due professional care?

145. Which of the following demonstrates that the internal audit activity exercises due professional care?

146. With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?

147. An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments. The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International! Standards for the Professional Practice of Internal Auditing (Standards).

Which of the following justifies inclusion of this clause in the reports?

148. Which of the following scenarios provides the most concerning red flag or indicator of possible fraud?

149. Which of the following must be considered by the chief audit executive before writing the internal audit charter?

150. An internal audit team received the following feedback from operational management via a post-engagement survey "Management agrees with all audit findings However, the audit team did not consider our input on the best way to resolve the issues”

This feedback is an indication that the internal audit activity may need to improve which of the following interpersonal skills?

151. The chief audit executive (CAE) of a large organization has been asked by the board to assume responsibility for risk management and compliance operations, both of which are distinct departments within the organization and are subject to periodic audits by the internal audit activity In regards to future audits of these functions which of the following approaches would be most appropriate?

152. According to IIA guidance, which of the following statements is true regarding internal auditors' knowledge, skills and other competencies?

153. During a complex financial compliance engagement, a senior internal auditor determines that current audit procedures are not sufficient for adequate testing She consults with a colleague and learns that a spreadsheet application contains a helpful tool She proceeds to use the tool to properly complete the evaluation.

Which of the following best describes the core competency displayed by the senior auditor?

154. Which of the following should play a leading role in overseeing the ethical atmosphere of an organization?

155. According to MA guidance, which of the following gives the internal audit activity the authority to request supporting documentation for the invoices of a third-party service provider?

156. Which action by senior management indicates to the internal auditor that there may be fraudulent activities occurring within the organization?

157. Which of the following is a true statement regarding environmental, social, and governance (ESG) and corporate social responsibility (CSR)?

158. In which of the following situations may the internal audit activity report conformance with the Standards?

159. A chief audit executive (CAE) has no direct access to the board.

According to IIA guidance, which of the following is the most appropriate way for the CAE to react?

160. According to NA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?

161. According to IIA guidance, which of the following actions by the chief audit executive (CAE) best demonstrates the organizational independence of the internal audit activity?

162. An organization's board has approved an expansion plan into a new market. The board acknowledged that if the expansion is not successful, the organization would encounter large monetary losses consisting of legal fees, research and development costs, rent expenses, and labor fees.

Which of the following has the board approved?

163. Which of the following statements is correct regarding disclosure of conformance or Standards?

164. Which of the following statements is true regarding risk management frameworks?

165. Which of the following approaches will internal audit utilize when developing a set of performance standards to measure an organization’s risk management process against?

166. Which of the following would be a red flag for potential issues in the control environment?

167. Which of the following tools would be most useful to an internal auditor performing an assessment of the effectiveness of the organization's risk responses?

168. Which principle of the HA Code of Ethics focuses on continuing education and professional development?

169. Operational management in the IT department has developed key performance indicator reports, which are reviewed in detail during monthly staff meetings.

This activity is designed to prevent which of the following conditions?

170. Which of the following statements is the most appropriate for a chief audit executive to include in the internal audit policy manual in order to promote objectivity?

171. Which of the following is an appropriate roe fa the internal audit activity?

172. If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?

173. At what point in time can an organization conclude that the established organizational governance framework was correctly implemented?

174. During the closing meeting of a procurement audit, the business manager disagrees with the observation presented by the engagement supervisor and accuses the team of not understanding the procurement objectives The engagement supervisor blames the manager for impeding the audit.

What skillset should the chief audit executive utilize to manage this situation?

175. Which of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?

176. Which of the following statements is true with regard to the quality assurance and improvement program (GAIP)?

177. An internal auditor is assessing how the organization processes financial transactions and whether written policies and procedures are followed. The auditor requested to meet with certain employees to understand their related roles and responsibilities. However the employees refuse to meet with the auditor claiming they are too busy.

Which of the following responses would best demonstrate the auditor's conflict-resolution skills?

178. During the planning stage of an assurance engagement, a payroll clerk informed the internal auditor that he is often asked to add new employees to the payroll without any formal new-hire documentation from human resources. The auditor is concerned that this increases the risk for fraud.

To complete engagement planning, which of the following is the most appropriate next step for the auditor to take?

179. The results of an assessment of the adequacy of controls would be considered incomplete or misleading unless the internal auditor considers which of the following?

180. Which of the following is the best reason why the engagement supervisor should take care in explaining to local management the criteria that will be used to measure the effectiveness of the control environment?

181. Which of the following is an example of impairment to internal auditor independence or objectivity'?

182. A chief audit executive assigned an internal auditor to perform an assurance engagement. The auditor concluded with a major audit finding based on hearsay evidence.

Which of the following competencies did the auditor appear to be lacking?

183. In its five years of existence, an internal audit activity conducted a single internal assessment of its quality assurance and improvement program (QAIP). The results of that assessment showed that the internal audit activity did not conform with the Standards. Prior to this, an external assessment of the internal audit activity's QAIP was conducted, which reported that the internal audit activity was in conformance with the Standards.

Considering the two assessments, what would be the internal audit activity's current state of conformance with the Standards?

184. Which of the following statements is true regarding internal controls?

185. Which of the following statements would typically be included in the responsibility section of the internal audit charter?

186. Guidelines need to be set for various levels of suspected fraud within an organization and when it would be reported to the audit committee.

Which of the following would be reported at the next meeting?

187. Which of the following would be addressed in the internal audit charter?

188. How do assurance services and consulting services differ?

189. Which of the following would an internal auditor expect to find within an organization’s internal control framework?

190. A new internal audit activity is considering the adoption of a risk and control framework.

Which of the following is the most appropriate consideration during this process?

191. Which of the following corporate social responsibility strategies is associated with responding to outside pressure by assuming additional responsibility?

192. Due to unfavorable economic conditions management decided to postpone new investments for the next year.

Which of the following best describes the risk management strategy used to address this situation?

193. Regarding the chief audit executive (CAE).

Which of the following is considered an impairment to the independence of the internal audit activity?

194. An internal auditor failed to identify transactions between the parent organization and a subsidiary.

What is the most likely reason for the failure?

195. Prior to commencing a financial compliance engagement, the engagement supervisor reads the business plan for the finance department and meets informally with the director to learn more about any key issues.

Which of the following competencies is the engagement supervisor demonstrating?

196. Make arrangements to obtain assistance from a competent IT auditing expert.

197. Which of the following would be Included in ongoing monitoring of the performance of the internal audit activity?

198. Which of the following is a true statement regarding whistleblowing?

199. How should the internal audit activity promote continuous improvement of organizational controls?

200. An external assessment was performed as part of the organization's quality assurance and improvement program.

Which of the following conclusions confirms that the internal audit activity is in conformance with the Standards'?

201. Which of the following statements relating to risk management is true?

202. An internal auditor was completely honest with operational management when delivering unfavorable audit results.

Which of the following best describes the IIA Code of Ethics principle that the auditor demonstrated?

203. Who is responsible for setting the risk appetite?

204. Which of the following most accurately describes the role of the board when it comes to organizational governance?

205. Which statement accurately describes the authority of the internal audit activity as outlined in the audit charter?

206. Which of the following statements is true regarding reporting results of the quality assurance and improvement program to senior management and the board?

207. Which of the following statements is true regarding the disclosure of results of the quality assurance and improvement program?

208. Which of the following disclosures must the chief audit executive (CAE) include when communicating the results of the quality assurance and improvement program to senior management and the board?

209. Which of the following scenarios would most significantly restrict the areas where internal audit could perform assurance services?

210. A whistleblower reveals to the chief audit executive (CAE) detailed allegations of potential fraud at the senior management level. Although the CAE has some experience in the area, she chooses to retain an external fraud expert to conduct the investigation.

When asked by the director of finance to defend the expenditure, which of the following statements represents the CAE's best response?

211. Which of the following best describes organizational governance processes?

212. Which of the following best describes the board’s role in establishing effective organizational governance?

213. An internal auditor assessed that the risk of steel theft at a plant is high. In response, the plant's management introduced a number of controls, including fences around the facility, a metal detector at the entrance, and monthly steel inventory counts.

If the controls operate as intended, which of the following outcomes would the internal auditor hope to see?

214. Which of the following best describes a proactive role for the internal audit activity with regard to the organization's ethics program?

215. The internal auditor obtained large volumes of transaction history data for accounts on which he suspected that some fraudulent transactions occurred.

Which of the following actions best demonstrates due professional care by the internal auditor?

216. Management is installing security cameras to identify unauthorized physical access to the organization's warehouse.

This is an example of which of the following types of controls?

217. Which of the following statements best describes how the internal audit activity obtains reasonable assurance that significant risks in the organization are identified and assessed?

218. Senior management purchased surveillance cameras and installed them over a door that provides entry to an area where according to a recent internal audit report, hazardous materials exist and there is a high risk of explosion.

Which type of control was implemented in this situation?

219. Which of the following must be in existence as a precondition to developing an effective system of internal controls?

220. When beginning an engagement to assess the effectiveness of the organization's newly revamped risk management processes, which of the following should internal auditors review first?

221. Which of the following would be the best choice for a continuing professional development requirement for a newly created internal audit activity?

222. Which of the following relates to the concept of due professional care?

223. Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?

224. The internal audit activity is asked to review the effectiveness of controls around the disposal of chemical waste. However, the internal auditors on staff lack the necessary skills to conduct this review.

Which of the following would be the most appropriate approach?

225. A newly hired internal auditor is most likely to need further education in the area of business acumen in which of the following situations?

226. Considering the concepts of organization wide risk management and the system of internal controls, the internal audit activity as a whole can be considered which of the following types of control?

227. Which of the following statements is most accurate with respect to the required elements of the quality assurance and improvement program?

228. According to NA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?