Which of the following activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?

• A.The internal auditor reviews the physical access to merchandise during an inventory count.
• B.The audit manager conducts an internal quality assessment of the internal audit activity's adherence to the Standards.
• C.The audit manager refrains from assigning an auditor who was a former payroll clerk to conduct a payroll audit.
• D.The board approves the annual performance evaluation of the chief audit executive.

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An auditor plans to analyze customer satisfaction, including. (1) customer complaints recorded by the customer service department during the last three months; (2) merchandise returned in the last three months; and (3) responses to a survey of customers who made purchases in the last three months.
Which of the following statements regarding this audit approach is correct?

• A.Although useful, such an analysis does not address any risk factors.
• B.The survey would not consider customers who did not make purchases in the last three months.
• C.Steps 1 and 2 of the analysis are not necessary or cost-effective if the customer survey is comprehensive.
• D.Analysis of three months' activity would not evaluate customer satisfaction.

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In order to save time, an audit manager no longer required that a standard internal control questionnaire be completed for each audit engagement. Does this represent a violation of the Standards?

• A.Yes, because internal control should be evaluated on every engagement and the internal control questionnaire is the mandated approach to evaluate controls.
• B.Yes, because internal control should be evaluated on every engagement and the internal control questionnaire is the most efficient method to do so.
• C.No, because auditors may omit necessary procedures if there is a time constraint, based on audit judgment.
• D.No, because auditors are not required to complete internal control questionnaires on every engagement.

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Which domain of the COBIT framework addresses the maintenance and change management of existing systems to ensure alignment with business needs and objectives?

• A.Plan and organize.
• B.Deliver and support.
• C.Monitor and evaluate.
• D.Acquire and implement.

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Which of the following best demonstrates that an internal auditor is applying due professional care when planning an assurance engagement?

• A.Conducting the engagement on the presupposition that fraud exists.
• B.Assessing the risk of noncompliance with laws and regulations
• C.Following the policies as prescribed by the internal audit manual.
• D.Advising management of the area under review on how to mitigate internal control risks.

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