As a result of a high-profile processing error, respective business unit managers are implementing new controls. The internal audit team was asked for their advice regarding the controls. The objective of this consulting engagement would be determined by which of the following?

• A.The business unit manager and the engagement supervisor.
• B.The organization's board of directors.
• C.The compliance manager and the business unit manager.
• D.The chief audit executive.

Comment: *

Name: *

Email: *

Verification: *

Which of the following would have the least impact (either positive or negative) on an assessment of a department's control environment?

• A.Many department functions were duplicated or verified by other department employees as part of the department's normal procedures.
• B.The department manager sets a tone of honesty and integrity in all business dealings and this tone is emulated by department personnel.
• C.The department managed long-term investments, including investment in derivatives and other financial instruments, to maximize return.
• D.Audit tests designed to verify compliance with control procedures detected a general failure to follow standard procedures for transaction authorization.

Comment: *

Name: *

Email: *

Verification: *

An internal auditor must determine which components of an organization's telecommunications may introduce the greatest risk. Which of the following tasks should the internal auditor complete first?

• A.Review the open systems interconnect network model.
• B.Map the network software and hardware products into their respective layers.
• C.Identify the network operating costs.
• D.Ascertain the business purpose of the network.

Comment: *

Name: *

Email: *

Verification: *

Which of the following best describes the underlying premise of the COSO enterprise risk management framework?

• A.Management should set objectives before assessing risk.
• B.Every entity exists to provide value for its stakeholders.
• C.Policies are established to ensure that risk responses are performed effectively.
• D.Enterprise risk management can minimize the impact and likelihood of unanticipated events.

Comment: *

Name: *

Email: *

Verification: *

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

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

Comment: *

Name: *

Email: *

Verification: *