Exam for engine

NO.121 A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

NO.122 Which of the following statements best explains why internal auditors map processes?
1. To obtain audit evidence to support auditor’s observations.
2. To determine scope and objectives of the audit.
3. To facilitate the identification of ownership and responsibility for key risks.
4. To identify potential efficiency improvements.

NO.123 According to IIA guidance, which of the following statements describes one of the similarities between assurance and consulting services?

NO.124 Allegations have been made that an organization’s share price has been manipulated.
Which of the following would provide an internal auditor with the most objective evidence in this case?

NO.125 Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management’s decision is least plausible?

NO.126 When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?
1. Include copies of all client files that were reviewed for the audit.
2. Avoid the use of professional, industry-appropriate jargon and technical terms.
3. Indicate the original sources of all data and information used in the workpapers.
4. Leave blank space for cross-references to be completed during the post-audit process.

NO.127 Which of the following is most likely to function as a directive control?

NO.128 While preparing for an audit of senior management expenses, the chief audit executive (CAE) learns that management is unable to locate a number of original expense claims to support the related disbursements. She decides to defer the engagement until they can be located. Which of the following principles likely guided the CAE’s decision?

NO.129 An IT contractor applied for an internal audit position at a bank. The contractor worked for the bank’s IT security manager two years ago. If the audit manager interviewed the contractor and wants to extend a job offer, which of the following actions should the chief audit executive pursue?

NO.130 According to IIA guidance, which of the following should be formally documented in the internal audit charter?

NO.131 The chief audit executive (CAE) of a mid-sized pharmaceutical organization has operational responsibility for the regulatory compliance function. The audit committee requests an assessment of regulatory compliance.
According to IIA guidance, which of the following is the CAE’s best course of action?

NO.132 If appropriate safeguards exist, which of the following is considered a legitimate internal audit role within risk management at an organization?

NO.133 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?

NO.134 What is the primary purpose of a fishbone diagram?

NO.135 An auditor identifies three errors in the sample of 25 entries selected for review (a 12 percent error rate).
Based on this result, the auditor assumes that approximately 59 of the total population of 492 entries are incorrect. To reach this assumption, the auditor has used a technique known as which of the following?

NO.136 Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?

NO.137 According to The IIA’s Code of Ethics, which of the following actions violates the principle of confidentiality?

NO.138 According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?

NO.139 The results of an internal audit activity’s (IAA) quality assurance and improvement program are favorable and an external assessment was completed within the last five years. Which of the following statements may the IAA use to describe its work?

NO.140 Which of the following best describes the assessment of risks?