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NEW QUESTION 26
Which of the following would be a violation of the objectivity of a certified internal auditor?
1. Accepting a motivational book from a major vendor.
2. Attending a professional sporting event as the guest of a corporate supplier.
3. Performing an internal audit engagement for a division 18 months after having controllership responsibility for that division.
4. Designing and implementing a corporate-wide utilities cost containment program.

  • A. 2 and 4 only
  • B. 2 and 3 only
  • C. 1, 3, and 4 only
  • D. 1 and 3 only

Answer: A

 

NEW QUESTION 27
Which of the following items of evidence is most valid to support a finding that a public utility’s repair crews are sometimes required to work under unsafe conditions?

  • A. Written and signed descriptions from repair crew members of the unsafe conditions that they have had to endure.
  • B. Reports showing increases in the number of days of sick leave for individuals on repair crews.
  • C. Videotapes of repair crews working in a situation that is unsafe.
  • D. Audio taped testimonials from repair crew members who were required to work under unsafe conditions.

Answer: C

 

NEW QUESTION 28
With regard to external assessments of an internal audit activity (IAA),which of the following is the chief audit executive required to discuss with the board?

  • A. External reviewer conflicts of interest,and the need for an external assessment more frequently than once every five years.
  • B. The need for an external assessment more frequently than once every five years,and the simplest method for the external reviewer to join the IAA’s organization.
  • C. External reviewer conflicts of interest,and the timeline of the external assessment.
  • D. The simplest way for the external reviewer to join the IAA’s organization,and the timeline of the external assessment.

Answer: A

 

NEW QUESTION 29
Some of a company’s payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be:

  • A. Appropriate segregation of duties for batch approval.
  • B. Reconciliation of paychecks to the bank account.
  • C. Validation of hash totals.
  • D. Edit controls on the payroll file.

Answer: C

 

NEW QUESTION 30
If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

  • A. Refer the client to the IAA’s charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.
  • B. Terminate the audit engagement in full because an operational audit will not be productive without the client’s cooperation.
  • C. Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.
  • D. Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

Answer: A

 

NEW QUESTION 31
……

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