Which of the following would provide the best guidance to a chief audit executive who is setting internal audit staff requirements?

• A.Results from discussions of audit needs with executive management and the audit committee.
• B.The results of the audit staff's most recent performance reviews.
• C.A review of audit staff education and training records.
• D.Information about the audit staff size and composition of comparable organizations.

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Which of the following is an example of collusion?

• A.A vendor sends a duplicate invoice with a new invoice number, and the accounts payable system fails to detect the duplication.
• B.A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.
• C.An employee includes a faked receipt in his expense claim, and the claim is signed by the employee's manager.
• D.An employee works with the IT manager to develop a program for identifying duplicate invoice payments.

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A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up.
Which of the following statements is true about the auditor's actions?

• A.They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.
• B.They are not in violation of the Standards but are in violation of the IIA Code of Ethics.
• C.They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.
• D.They are in violation of neither the IIA Code of Ethics nor the Standards.

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Which of the following is an example of a management control technique?

• A.A budget.
• B.The board of directors.
• C.A risk assessment.
• D.The control environment.

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Which of the following is an activity that an internal auditor must not perform?

• A.Provide assurance for the effectiveness of anti-money laundering training.
• B.Assess the risk of being fined for ineffective anti-money laundering practices.
• C.Establish and provide continuing assurance on an anti-money laundering program for new hires.
• D.Survey employees for their understanding of anti-money laundering practices.

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