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

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

Comment: *

Name: *

Email: *

Verification: *

When using a risk assessment model to develop audit plans, it is essential that the chief audit executive take into account the:

• A.Dates of future board meetings.
• B.Results of the last audit.
• C.Planned visits by the external auditors during the upcoming year.
• D.Recent or expected changes in management direction and objectives.

Comment: *

Name: *

Email: *

Verification: *

An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims. Which of the following methods would be most effective and efficient in completing this task?

• A.Interviewing.
• B.Monitoring.
• C.Process mapping.
• D.Distributing questionnaires.

Comment: *

Name: *

Email: *

Verification: *

A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity's chief financial officer (CFO).
Which of the following would impair the internal audit function's independence?

• A.The CFO provides feedback on the CAE's audit reports.
• B.The CFO determines the scope of internal audit work in the accounting department.
• C.The CFO administers the annual evaluation process for the internal auditors.
• D.The CFO manages the accounting of the budget for the internal audit function.

Comment: *

Name: *

Email: *

Verification: *

A chief audit executive (CAE) is planning to issue an annual report concluding on the overall effectiveness of the organization's internal control system. According to the Standards, which of the following is likely the most significant challenge facing the CAE when creating the report?

• A.The opinion must include difficult to measure risks such as the risks of management override of controls, and collusion among dishonest personnel.
• B.The opinion is dependent on complex analyses of numerous internal audit engagements carried out over the prior year.
• C.The opinion is only issued once a year, limiting its usefulness.
• D.Assessing control effectiveness is complicated by inherent risks.

Comment: *

Name: *

Email: *

Verification: *