Certified Internal Auditor Certified Internal Auditor MCQ 4

Question 1

According to the IIA Standards, which of the following is the primary responsibility of the board regarding the internal audit activity?

Accepted Answer

Overseeing the internal audit activity, including approving the internal audit charter

Answer

The board is responsible for oversight of the internal audit activity, which includes approving the audit charter and ensuring its independence.

Question 2

An internal auditor is asked to consult on the design of a new internal control for a high-risk process. After the consulting engagement, what must the auditor do to preserve objectivity for future assurance work on this area?

Accepted Answer

Disclose the consulting role and the potential impairment of objectivity to the CAE

Answer

Auditors who consulted on a control design must disclose the potential objectivity impairment to the CAE before conducting assurance work on that area.

Question 3

Which of the following audit evidence is generally considered most reliable?

Accepted Answer

External confirmations obtained directly by the auditor

Answer

External confirmations obtained directly by the auditor are most reliable because they are independent of the auditee.

Question 4

A CIA candidate is reviewing IT general controls (ITGCs). Which of the following is an example of an ITGC?

Accepted Answer

User access management and periodic access recertification

Answer

User access management and recertification are IT general controls that provide a foundation for the reliability of all application controls.

Question 5

During a fraud investigation, the internal auditor discovers evidence of possible criminal activity. What is the auditor's most appropriate immediate action?

Accepted Answer

Notify appropriate authorities within the organization and consider involving legal counsel

Answer

Upon discovering potential criminal activity, the auditor should notify appropriate management and legal counsel rather than acting unilaterally.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Certified Internal Auditor MCQ 4