Q59. All of the following tools are employed to control large-scale projects except:

Q60. A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an internal auditor look for as an indicator of employee theft of food from a specific store?

Q61. Which of the following is true of engagement recommendations?
1. Specific suggestions for implementation must be included.
2. The internal auditor’s observations and conclusions may serve as the basis.
3. Actions to correct existing conditions or improve operations may be included.
4. Approaches to correcting or enhancing performance may be suggested.

Q62. If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?

Q63. An appliance repair company is considering relocating the center that houses its service vehicles. An internal auditor wants to determine the potential reduction in average miles driven by the service vehicles if the center is relocated. Which of the following statistical sampling methods would be most appropriate for this test?

Q64. According to the Standards, which of the following objectives is not required to ensure the appropriate completion of an engagement?

Q65. A bank uses a risk analysis matrix to quantify the relative risk of auditable entities. The analysis involves rating auditable entities on risk factors using a scale of 1 to 10, with 10 representing the greatest risk. A partial list of risk factors and the ratings given to three of the bank’s departments is provided below:

Which of the following statements regarding risk in the department is true?

Q66. Which of the following statements regarding the use of external contracted services by the chief audit executive (CAE) is false?

Q67. An internal audit intends to create a risk and control matrix to better understand the organization’s complex manufacturing process. With which of the following approaches would the auditor most likely start?

Q68. A newly promoted chief audit executive (CAE) is faced with a backlog of assurance engagement reports to review for approval. In an attempt to attach a priority for this review, the CAE scans the opinion statement on each report. According to IIA guidance, which of the following opinions would receive the lowest review priority?
1. Graded positive opinion.
2. Negative assurance opinion.
3. Limited assurance opinion.
4. Third-party opinion.

Q69. According to the Standards, which of the following would least likely be considered a red flag when evaluating the risk for fraud?

Q70. Which of the following is not an outcome of control self-assessment?

Q71. A chief audit executive (CAE) determined that management chose to accept a high-level risk that may be unacceptable lo the organization. Which is the best course of action for the CAE to Follow?

Q72. Which of the following best exemplifies having effective risk management and internal control processes?

Q73. According to the International Professional Practices Framework, which of the following statements is correct regarding the communication of audit results?
I. Summary reports may be issued separately from or in conjunction with the final report.
II. Interim reports may be written or oral.
III. Detailed reports should always be issued to the audit committee.
IV. Interim reports should be used to communicate information which requires immediate attention.

Q74. Which of the following is an appropriate responsibility for the internal audit activity with regard to the organization’s risk management program?

Q75. The most common motivation for management fraud is the existence of:

Q76. In the following risk control map risks have been categorized based on the level of significance and the associated level of control. Which of the following statements is true regarding Risk C?