An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. The best control to ensure that the table is updated correctly for only valid pay changes would be to:

• A.Limit access to the data table to management and line supervisors who have the authority to determine pay rates.
• B.Require a supervisor in the department, who does not have the ability to change the table, to compare the changes to a signed management authorization.
• C.Ensure that adequate edit and reasonableness checks are built into the automated system.
• D.Require that all pay changes be signed by the employee to verify that the change goes to a bona fide employee.

Comment: *

Name: *

Email: *

Verification: *

Outsourcing a business activity is considered which of the following risk management techniques?

• A.Avoiding a risk.
• B.Mitigating a risk
• C.Sharing a risk.
• D.Reducing a risk.

Comment: *

Name: *

Email: *

Verification: *

Overall audit efficiency is enhanced between the internal and external audit functions when:

• A.Audits of the same department are conducted at different times.
• B.External audit scope is reduced based on the internal audit department's activities.
• C.The internal audit department reviews functions or departments prior to the external audit.
• D.Internal audit coverage is reduced to avoid potential conflicts of interest.

Comment: *

Name: *

Email: *

Verification: *

A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?

• A.The CAE should change the senior auditor's assignment and take corrective action for the auditor's failure to disclose the conflict of interest.
• B.The CAE should not interfere because there is no evidence that a conflict of interest has occurred.
• C.The CAE should require the senior auditor to disclose the relationship in writing before continuing his responsibility for monitoring procurement.
• D.The CAE should remind the senior auditor of his obligation to be objective and impartial.

Comment: *

Name: *

Email: *

Verification: *

Senior management purchased surveillance cameras and installed them over a door that provides entry to an area where according to a recent internal audit report, hazardous materials exist and there is a high risk of explosion Which type of control was implemented in this situation?

• A.A preventive control
• B.A directive control
• C.A corrective control
• D.A detective control

Comment: *

Name: *

Email: *

Verification: *