Why is a code of ethics for the internal audit profession necessary?

• A.It guides internal auditors in their service to others.
• B.It ensures that all members of the profession possess the same level of competence.
• C.It requires auditors to exhibit loyalty to their organizations.
• D.It provides auditors with protection from lawsuits.

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The internal audit activity's role in the risk assessment and management processes of an organization is determined by the:

• A.Board of directors.
• B.Chief audit executive.
• C.Risk management department.
• D.External auditors.

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Which of the following best illustrates the application of due professional care during an audit of the procurement department?

• A.The internal auditor began checking purchase requisitions for proper authorizations. He stopped when he discovered an instance of noncompfiance. and he concluded the controls were ineffective.
• B.The internal auditor analyzed bidding documents provided by management. Management indicated that the documents were purchase orders issued to a sole-source vendor Based on the analysis and management's declaration, the internal auditor determined that the procurement process was effective.
• C.The internal auditor selected a sample of purchase orders with amounts greater than S5.000, the threshold at which the organization requires a bidding process. The auditor obtained documentation of the bidding process for each purchase order in the sample.
• D.The internal auditor discovered an instance where management did not follow the standard bidding processes. The auditor assessed the validity of management's
  reasons for deviating from standard practice and the supporting documentation, and determined that the deviation was acceptable.

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Which of the following most accurately describes corporate social responsibility at an organization?

• A.A philosophy driven by employees that flows up to senior management and the board of directors.
• B.An organizational locus on improving the overall environment, even it is to the detriment of the local community.
• C.A policy of ensuring that the organization is socially responsible, even if it leads to unprofitability due to increased costs.
• D.An overall commitment of the organization to improve the quality of life for not only the employees but the community at large.

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Which of the following is most likely to be considered a control weakness?

• A.Buyers promptly update the official vendor listing as new supplier sources become known.
• B.Vendor invoice payment requests are accompanied by a purchase order and receiving report.
• C.Department managers initiate purchase requests that must be approved by the plant superintendent.
• D.Purchase orders are typed by the purchasing department using prenumbered forms.

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