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NO.18 Which of the following best demonstrates conformance with the Standards regarding the internal audit activity’s purpose authority, and responsibility?

NO.19 Which of the following is the best example of a strategic objective?

NO.20 During an internal audit, the internal auditor compares the employee turnover rate in the area being audited with the employee turnover rate in the organization as a whole. This is
an example of which of the following analytical auditing procedures?

NO.21 According to IIA guidance, which of the following statements is true regarding the reporting of results from a quality assurance and improvement program review of the internal audit activity?

NO.22 According to The MA Global Internal Audit Competency Framework, which of the following areas of training would best assist the internal audit activity in improving its use of tools and techniques?

NO.23 Which of the following should an internal auditor possess in order to fulfill the responsibilities of the internal audit activity?

NO.24 An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IAA. Which of the following also should be included in the charter?

NO.25 Which of the following would be an appropriate outcome of a quality assurance and
improvement program in an internal audit activity?
1.Modification of resources.
2.Corrections to procedures.
3.Changes in processes.
4.Implementation of new technology.

NO.26 An internal auditor discovered fraud while performing an audit of an organization’s procurement process.
Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?

NO.27 During an audit of financial contracts, an auditor learns that a relative has a substantial loan with the organization. The auditor should:

NO.28 Which of the following factors have the greatest influence on the independence of the internal audit activity?

NO.29 An internal auditor has taken an attributes sample of a bank’s existing loan portfolio. Out of a sample of 60 loans, the auditor found:
Four that were not properly collateralized.
Five that were not in compliance with bank policies (other than lack of collateralization).
Four that were part of a related-party group, but were set up as separate loan entities.
Of the 60 loans selected in the sample, these errors were noted on a total of 10 loans.
Several loans had multiple problems.
Which of the following conclusions can the auditor reach from these observations?
1. There is sufficient evidence that fraudulent activity is taking place by one or more of the bank’s lending officers.
2. The financial statements will be misstated as a result of these actions.
3. There are significant noncompliance audit findings that should be reported.

NO.30 An internal auditor is planning an operational audit of the accounts payable function. Which of the following best mitigates the risk of the organization being a victim of disbursement fraud by employees?

NO.31 A company produces a product that consists of materials X, Y, and.
The product is mixed so that:
The quantity of material X used is one-third more than that of material Y.

The quantity of material Y used is one-fourth less than that of material Z.

If the company used 24, 000 units of material Z during a period, what is a reasonable estimate of the amount of material X used?

NO.32 According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?
I. The audit committee has requested assurance of the treasury department’s compliance with a new policy on the use of financial instruments.
II. Treasury management has not instituted any risk management policies.
III. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
IV. The external auditors have indicated some difficulties in obtaining account confirmations.

NO.33 When dealing with various stakeholders which of the following is true regarding an internal auditor’s responsibility to remain objective
and independent?

NO.34 According to the International Professional Practices Framework, which of the following is the appropriate division of responsibilities for the coordination of internal and external audit efforts?
I. Oversight of Work
Coordination of Activities
Chief audit executive
Senior management
II. Board
Chief audit executive
III. Chief financial officer
Chief audit executive
IV. Board
Chief financial officer