Certified Internal Auditor (IIA) 4

Question 1

When the internal audit activity conforms with the IIA Standards, the CAE may state conformance in external communications:

Accepted Answer

Only if a favorable external quality assessment has been completed within the past five years

Answer

The IIA Standards require that conformance can only be stated publicly when supported by a favorable external quality assessment conducted within the past five years.

Question 2

Which governance body does the CAE primarily report functionally to?

Accepted Answer

The Board or Audit Committee

Answer

To maintain independence, the CAE has a functional reporting relationship to the board or audit committee, which oversees the internal audit activity.

Question 3

An internal auditor using analytical procedures compares current-year expense ratios to the prior year. This technique is BEST categorized as:

Accepted Answer

Trend analysis

Answer

Comparing financial or operational data over time periods is a form of trend analysis, a subset of analytical procedures.

Question 4

Which of the following scenarios MOST likely represents a conflict of interest for an internal auditor?

Accepted Answer

The auditor discloses a financial interest in a vendor being audited

Answer

A financial interest in an audited vendor creates a direct conflict of interest that impairs objectivity and must be disclosed and managed.

Question 5

The IIA Standards require that final audit communications include which of the following?

Accepted Answer

The engagement's objectives, scope, and applicable results

Answer

Final communications must include the engagement objectives, scope, and the results, including conclusions, recommendations, and action plans.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor (IIA) 4