An internal auditor is testing whether payments to outside contractors have been charged to the proper account. Which of the following sampling methods would be most useful in completing this task?

• A.Haphazard sampling.
• B.Probability-proportional-to-size sampling.
• C.Attribute sampling.
• D.Judgmental sampling.

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Which of the following statements, if true, could justify an auditor's decision not to report governance-related control deficiencies to the audit committee?

• A.Management plans to initiate corrective action.
• B.The board of directors has a separate corporate governance committee.
• C.The amounts and the potential risks associated with the deficiencies are not material to the overall organization.
• D.Governance issues are complex and the auditor should rely on management's analysis of the extent of the problem.

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An organization that outsources much of its internal audit work to an external service provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards?

• A.A team under the direction of the organization's chief audit executive with validation by a former manager of the internal audit activity.
• B.External industry associate that performed a similar review for a supplier of the organization.
• C.The same external service provider because of its competency and experience with the organization.
• D.A team from an independent entity that previously employed the chief audit executive of the organization.

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For a new board chair who has not previously served on the organization's board, which of the following steps should first be undertaken to ensure effective leadership to the board?

• A.Chair should gain an understanding of the needs of key stakeholders.
• B.Chair should determine the appropriateness of the current strategic risks.
• C.Chair should learn the current risk management system of the company.
• D.Chair should learn the current organizational culture of the company.

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With regard to external assessments of an internal audit activity (IAA), which of the
following is the chief audit executive required to discuss with the board?

• A.The simplest way for the external reviewer to join the IAA's organization, and the timeline of the external assessment.
• B.External reviewer conflicts of interest, and the timeline of the external assessment.
• C.The need for an external assessment more frequently than once every five years, and the simplest method for the external reviewer to join the IAA's organization.
• D.External reviewer conflicts of interest, and the need for an external assessment more frequently than once every five years.

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