QUESTION 84
At the conclusion of an audit of an organization’s treasury department, a report was issued to the treasurer, chief financial officer, president, and board. Because of the sensitivity of some findings, a follow-up review was performed. The auditor should provide the report of follow-up findings to the.
I. Treasurer.
II. Chief financial officer.
III. President.
IV.
Board.

QUESTION 85
Internal control questionnaires are used to achieve which of the following objectives?

QUESTION 86
An internal auditor is reviewing purchases made through the organization’s corporate credit card program.
Which of the following statements best describes a root cause of a deficiency?

QUESTION 87
An internal auditor tested whether purchase orders were supported by appropriately approved purchase requisitions She sampled a population of purchase documents and identified instances where purchase requisitions were missing However, she did not notice that n some cases purchase requisitions were approved by an unauthorized person Which of the following risks most appropriately describes this situation?

QUESTION 88
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?

QUESTION 89
An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between 6 and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. What is the most appropriate course of action for the chief audit executive to take?

QUESTION 90
Which of the following should be included in a privacy audit engagement?
1. Assess the appropriateness of the information gathered.
2. Review the methods used to collect information.
3. Consider whether the information collected is in compliance with applicable laws.
4. Determine how the information is stored.

QUESTION 91
When establishing the internal audit activity’s annual plan, which of the following would be the best source of potential audit engagement topics?

QUESTION 92
If the chief audit executive believes that senior management has accepted a level of residual risk that is unacceptable to the organization, they should:

QUESTION 93
What is the most important risk in determining the validity of construction delay claims?

QUESTION 94
A payroll clerk enters payroll transactions into the general ledger. The staff accountant reconciles the payroll ledgers. The payroll manager issues the manual payroll checks. The checks are maintained in a locked cabinet. The chief financial officer secures the keys to the cabinet. The payroll clerk distributes the manual checks.
The payroll manager reconciles the bank statements monthly. Which of the following audit steps best addresses the risk of fraud in the payroll process?

QUESTION 95
When approving the final engagement report, which of the following is most critical?

QUESTION 96
Which of the following actions are appropriate for the chief audit executive to perform when identifying audit resource requirements?
1.Consider employees from other operational areas as audit resources, to provide additional audit coverage in the organization.
2.Approach an external service provider to conduct internal audits on certain areas of the organization, due to a lack of skills in the organization.
3.Suggest to the audit committee that an audit of technology be deferred until staff can be trained, due to limited IT audit skills among the audit staff.
4.Communicate to senior management a summary report on the status and adequacy of audit resources.

QUESTION 97
An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between 6 and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. What is the most appropriate course of action for the chief audit executive to take?

QUESTION 98
Which of the following sources of testimonial evidence would be considered the most reliable regarding whether a process is effectively performed according to its design?

QUESTION 99
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?

QUESTION 100
Which of the following statements is true regarding engagement planning?

QUESTION 101
Which of the following is an effective approach for internal auditors to take to improve collaboration with audit clients during an engagement?
1.Obtain control concerns from the client before the audit begins so the internal auditor can tailor the scope accordingly.
2.Discuss the engagement plan with the client so the client can understand the reasoning behind the approach.
3.Review test criteria and procedures where the client expresses concerns about the type of tests to be conducted.
4.Provide all observations at the end of the audit to ensure the client is in agreement with the facts before publishing the report.

QUESTION 102
Which of the following manual audit approaches describes testing the validity of a document by following it backward to a previously prepared record?

QUESTION 103
Which of the following statements is true pertaining to interviewing a fraud suspect?
1. Information gathered can be subjective as well as objective to be useful.
2. The primary objective is to obtain a voluntary written confession.
3. The interviewer is likely to begin the interview with open-ended questions.
4. Video recordings always should be used to provide the highest quality evidence.

QUESTION 104
Which of the following best describes how an internal auditor would use a flowchart during engagement planning?

QUESTION 105
An internal auditor for a financial institution has just completed an audit of loan processing. Of the 81 loans approved by the loan committee, the auditor found seven loans which exceeded the approved amount. Which of the following actions would be inappropriate on the part of the auditor?

QUESTION 106
What would be used to determine the collectability of accounts receivable balances?

QUESTION 107
What is the primary purpose of creating a preliminary draft audit report?