All of the following would normally be involved in preparing for and carrying out the internal audit activity's annual plan except:

• A.Establishing policies and procedures for workpapers and referencing.
• B.Providing periodic activity reports to the audit committee on audit engagements in progress.
• C.Assessing the amount of risk in major departments.
• D.Training audit staff on appropriate audit methodologies for addressing any newly identified risks.

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An internal auditor for a large bank is reviewing thecollectabilityof a loan that is secured by real property. The best evidence of the loan'scollectabilitywould be:

• A.A recent independent appraisal of the value of the real property.
• B.The borrower's confirmation of the loan balance.
• C.A document showing the loan committee's approval of the loan.
• D.A properly completed and signed loan application form.

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According to IIA guidance, which of the following actions is a chief audit executive required to take with regard to reporting the results of the quality assurance and improvement program?

• A.Report post-engagement reviews at least once every five years
• B.Report external assessments upon completion of such assessments
• C.Report external assessments at least annually
• D.Report ongoing monitoring quarterly

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Which of the following situations would most likely result in the auditor in charge (AIC) recommending that the staff auditor further investigate non-compliant items?

• A.A staff auditor conducted a test of statistical sample items, the results of which fall below the acceptable error rate by less than one percentage point.
• B.A staff auditor conducted a test of 85 non-statistical sample items, selected randomly, and 5 are not in compliance with organizational policy.
• C.Before the staff auditor conducted a test of statistical sample items, the AIC was already aware of underlying control weaknesses.
• D.A staff auditor conducted a test of 25 non-statistical sample items, selected judgmentally, and 5 are not in compliance with organizational policy.

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Which type of documentary evidence gathered by an organization's internal auditors has the highest level of reliability?

• A.Remittance advices.
• B.Bank statements.
• C.Inventory test counts.
• D.Written policy statements.

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