An internal auditor finds during an engagement that payment for the organization's general insurance policy is two months overdue. The issue is informally mentioned tothe finance department which immediately submits the invoice for payment. The auditor decides to exclude this finding from the final audit report as the oversight was immediately corrected and there were no consequences because of this late payment.
Which of the following rules of conduct as described in the IIA Code of Ethics, did the auditor fail to uphold?

• A.Objectivity.
• B.Integrity.
• C.Confidentiality.
• D.Competency.

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Which of the following professional development approaches would offer internal auditors the most opportunities to broaden their engagement experiences?

• A.Assign more experienced internal auditors to mentor the less experienced auditors.
• B.Rotate internal auditors among different engagement assignments.
• C.Appraise internal auditors' performance and competencies at least annually and issue constructive feedback.
• D.Send internal auditors to external trainings in advanced internal audit topics.

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Which of the following scenarios exemplifies a potential internal control weakness?

• A.The same employee who makes deposits at the bank prepares the monthly bank reconciliation.
• B.The same employee who receives cash from customers prepares a prelisting of cash receipts.
• C.The same employee who restrictively endorses checks received from customers prepares the bank's check deposit slips.
• D.The same employee who records cash receipts in the accounts receivable subsidiary ledger ensures that the ledger automatically updates the information.

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Why are preventative controls generally preferred to detective controls?

• A.Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.
• B.Because preventive controls identify exceptions after-the-fact, allowing them to be used after the entire review is complete and therefore finding exceptions that detective controls may have missed.
• C.Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.
• D.Because preventive controls are more sensitive and identify more exceptions than detective controls.

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The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?

• A.The assigned internal auditor must not assume management responsibilities while performing the engagement.
• B.The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.
• C.The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.
• D.The assigned internal auditor must maintain objectivity while performing the engagement.

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