An internal auditor has completed an audit of an organization's activities and is ready to issue a report. However, the client disagrees with the internal auditor's conclusions. The auditor should:

• A.Withhold the issuance of the audit report until agreement on the issues is obtained.
• B.Issue the audit report and state both the auditor and client positions and the reasons for the disagreement.
• C.Issue the audit report and omit the client's conclusion as it is not the opinion of the internal auditor.
• D.Perform additional work, with the client's concurrence, to resolve the areas of disagreement and delay the issuance of the report until agreement is reached.

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The internal audit activity of an investment company received a request to provide assurance on the risk management process. Preliminary discussion with senior management revealed that separate functions within the organization perform some form of risk management activities. Which of the following is the most effective tool for ensuring that risk management activities are coordinated among these functions?

• A.Delphi technique.
• B.Assurance map.
• C.Facilitated workshop.
• D.Analytical reviews.

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Which of the following statements is true regarding the use of internal control questionnaires (ICOs)?

• A.Answers to survey questions can be easily misinterpreted
• B.Controls with positive survey responses can be eliminated from further testing
• C.ICQs are efficient because they minimize the need for follow-up with survey respondents
• D.ICQs offer limited value for organizations with uniform procedures

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An audit client responded to recommendations from a recent consulting engagement. The client indicated that several recommended process improvements would not be implemented. Which of the following actions should the internal audit activity take in response?

• A.Confirm the decision with management and document this decision in the audit file.
• B.Initiate an assurance engagement on the unresolved issues.
• C.Escalate the unresolved issues to the board, because they could pose significant risk exposures to the organization.
• D.Document the issue in the audit file and follow up until the issues are resolved.

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According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?

• A.There has been an increase in unanticipated requests for advisory work.
• B.A recent benchmarking study found that using external service providers is a common practice of similarly-sized IAAs in other organizations.
• C.Previous work provided by the external service provider has been of great quality and value.
• D.The organization's audit universe is extensive and diverse.

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