Which of the following situations is most likely to impair internal audit objectivity?

• A.An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.
• B.An internal auditor reports both functionally and administratively to the chief financial officer (CFO).
• C.According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.
• D.An internal auditor performs an audit in a department that is led by the auditor's close friend.

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Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?

• A.It considers tolerable deviation rate more effectively than does statistical sampling.
• B.Non-statistical sample results must be projected to the population.
• C.Sampling risk will be accurately quantified through non-statistical sampling.
• D.Lesser evidence is required to support a conclusion than for statistical sampling.

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What is the primary benefit to the internal audit activity for undertaking an internal quality assessment?

• A.To help improve the overall quality of the internal audit activity's work.
• B.To identify inefficiencies within the internal audit team.
• C.To help the internal audit activity complete its annual assurance plan.
• D.To identify key risks and areas of concern within the organization.

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Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?

• A.So that the individual objectivity of the internal audit staff can be more clearly established.
• B.So that there is assurance of the internal audit staff's proficiency to complete audit activities.
• C.Because management requires the review to measure effectiveness of the internal audit activity.
• D.Because changes in the organization may impair the internal audit activity's ability to meet its objectives.

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According to The MA Code of Ethics, which of the following is one of the rules of conduct for objectivity?

• A.Internal auditors shall respect and contribute to legitimate and ethical objectives of the organization.
• B.Internal auditors shall be prudent in the use and protection of information acquired in the course of their duties.
• C.Internal auditors shall not accept anything that may impair or be presumed to impair their professional judgment.
• D.Internal auditors shall continually improve their proficiency and effectiveness and quality of their services.

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