The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality assessment program. According to IIA guidance, which of the following would be part of this program?

• A.Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.
• B.Assessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.
• C.Assessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.
• D.Compliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.

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The scope of a business process review primarily involves:

• A.Appraising the environment and comparing against established criteria.
• B.Evaluating organizational and departmental structures, including assessments of transaction flows.
• C.Assessing the organization's system of internal controls.
• D.Reviewing routine financial information and assessing the appropriateness of various accounting treatments.

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According to the Standards, which of the following should be the basis for scheduling follow-up of engagement recommendations?

• A.The follow-up manual procedures.
• B.The risks and exposures involved.
• C.The agreement made between internal auditors and management.
• D.The internal audit charter.

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The chief audit executive (CAE) of a new organization is in the process of determining the manner in which audit reports will be distributed and to whom. According to the Standards, which of the following is the most appropriate course of action for the CAE to take to develop this distribution process?

• A.The CAE should independently implement the report distribution, using best judgment to ensure that all relevant stakeholders are informed.
• B.The CAE should meet with senior management for their input, but finalize the distribution of all reports with the board.
• C.The CAE should request that senior management and the board meet to determine the most appropriate reporting method.
• D.The process should be determined in meetings with the external auditor and senior management to ensure alignment with external reporting.

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Which of the following best describes the primary concern of the audit manager upon review of engagement working papers of an auditor?

• A.To ensure that the audit programs are followed by the auditor.
• B.To ensure that the work papers create background for subsequent reviews.
• C.To ensure that as part of the documentation the auditor collected original documents that can corroborate the audit findings.
• D.To ensure adequate control over the custody of working papers is exercised by the auditor.

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