Which of the following should an internal auditor possess in order to fulfill the responsibilities of the internal audit activity?

• A.Proficiency in applying management principles in order to stand in for the chief financial officer.
• B.An understanding of management principles in order to evaluate deviations from good practices.
• C.An appreciation of internal audit standards in order to recognize problems.
• D.Proficiency in accounting principles in order to conduct fraud investigations.

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The chief audit executive (CAE) wants to ensure that there are sufficient resources available to fulfill the responsibilities of the internal audit activity in the coming year. Which statement describes the most logical sequence of events for the CAE to undertake in order to achieve this objective?

• A.Confirm audit plan; confirm budget; review existing resources; identify outstanding resource requirements.
• B.Review prior year audit plan; review existing resources; confirm new audit plan; confirm budget.
• C.Confirm budget; review existing resources; obtain any new resources required; confirm new audit plan.
• D.Review results of prior year audit plan; adjust current plan accordingly; hire required resources; confirm budget.

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Which of the following actions would an internal auditor perform primarily during a consulting engagement of a debt collections process?

• A.Advising management on streamlining the recording of accounts receivable.
• B.Performing a walk-through of the debt collections process to determine whether proper segregation of duties exists
• C.Reviewing journal entries for accuracy and completeness.
• D.Comparing the policies and procedures to regulatory collections guidance.

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In which of the following situations would fishbone diagrams be most useful?

• A.The problem is complicated and the root cause is unknown.
• B.Team members cannot effectively communicate with each other.
• C.The team is too small for brainstorming to be effective.
• D.The team consists of experts who can resolve problems without much difficulty.

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According to IIA guidance, which of the following risk management process evaluation findings would the internal audit activity consider most effective?

• A.Relevant risk information is captured and communicated in a periodic manner to management.
• B.Risk management processes are monitored through an annual assessment.
• C.Risk responses align with the organization's risk appetite.
• D.Strategic risks with low residual values are continuously monitored.

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