According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization's cash disbursements process?

• A.The accounts payable supervisor, accounts payable manager, and controller.
• B.The accounts payable manager, purchasing manager, and receiving manager.
• C.The accounts payable supervisor, controller, and treasurer.
• D.The accounts payable manager, chief financial officer, and audit committee.

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According to IIA guidance, which of the following should be considered when creating policies and procedures for the internal audit activity (IAA)?

• A.Number of auditors, complexity of audit activities, and structure of the IAA.
• B.Number of auditors, complexity of audit activities, and audit staff skills and competencies.
• C.Number of auditors, structure of the IAA, and audit staff skills and competencies.
• D.Complexity of audit activities, structure of the IAA, and audit staff skills and competencies.

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An auditor is performing a review of a complex process to identify opportunities to increase efficiency.
What is the most practical way to document the process to identify areas of inefficiency?

• A.Flowchart the process.
• B.Write a description of the process activities in sequential order.
• C.Develop a PERT (program evaluation and review technique) diagram.
• D.Create a decision tree.

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A chief audit executive (CAE) is determining which engagements to include on the annual audit plan. She would like to consider the organization's attitude toward risk and the degree of difficulty in achieving objectives.
Which of the following resources should the CAE consult?

• A.The corporate risk register.
• B.The strategic plan.
• C.Internal and external audit reports.
• D.The board's meeting records.

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A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainydays. What conditions would an internal auditor look for as an indicator of employee theft of food from a specific store?

• A.Both total sales and cost of ingredients used are greater than expected.
• B.Both total sales and cost of ingredients used are less than expected.
• C.On a sunny day, total sales are less than expected when compared to the cost of ingredients used.
• D.On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.

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