Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?

• A.The auditor tested samples of transactions to test the cash function's process flows.
• B.The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
• C.The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization.
• D.After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.

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Which of the following activities should the chief audit executive perform to ensure compliance with an organization's code of conduct?

• A.Review and adjudicate all violations of the code of conduct.
• B.Lead the committee responsible for the oversight of the code.
• C.Act as an adviser to the committee responsible for reviewing violations of the code.
• D.Implement a system of procedures to inform all employees of the code.

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Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?

• A.Queuing theory to assess potential bottlenecks in the process.
• B.A program evaluation and review technique chart.
• C.A Bedford analysis of orders filled to average delivery times.
• D.Decision trees rating actual performance against requirements.

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An internal auditor is evaluating techniques management uses to mitigate risks within a particular product division. Which of the following is an example of risk reduction?

• A.Management sells the product division to a competitor.
• B.Management outsources the product division to a third party.
• C.Management allows the product division to remain unchanged.
• D.Management modifies the product division to minimize errors.

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Which of the following controls could an internal auditor reasonably conclude is effective by observing the physical controls of a large server room?

• A.Foam fire extinguishers are operable to protect against electrical fires.
• B.Adequate signs are in place to assist in locating safety equipment.
• C.Swipe card access is required to gain access to the server room.
• D.Servers are secured individually to their racks by locks.

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