WGU D560
WGU D560 Internal Auditing I OA | Objective Assessment | 59
Questions and Answers | 2026 New Update | 100% Correct.
Testbankscove
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,Page 1
Question 1
An internal auditor uses an audit software tool to deeply examine the company's billing
history for the past year and evaluate the accuracy of billing figures and terms against
the respective sales contracts. The auditor also uses the tool to evaluate the accounts
payable, payroll, and expenses to gather insights into the outbound cash flow. Which
technique is the auditor using for the evaluation?
A) Cluster analysis
B) Data analytics
C) Systems software control
D) Market research
Correct Answer: B) Data analytics
Rationale: Data analytics involves examining large datasets to uncover patterns,
anomalies, and insights. Here, the auditor analyzes billing, payables, payroll, and
, expenses to evaluate accuracy and cash flow, which is a classic application of data
analytics in auditing.
Question 2
Who has a third-line role in a company according to the Institute of Internal Auditors'
Three Lines Model?
A) The chief financial officer who manages budgets
B) The senior marketing executive who leads sales strategies
C) The head of human resources who oversees staffing
D) The chief audit executive who leads the internal audit function
Correct Answer: D) The chief audit executive who leads the internal audit function
Rationale: In the IIA Three Lines Model, the third line provides independent and objective
assurance. The internal audit function, led by the chief audit executive, fulfills this role.
The other options are first-line (operational) or second-line (oversight) roles.
Page 2
Question 3
A company is developing a monitoring process for its system of internal controls
following the COSO's framework. (COSO stands for the Committee of Sponsoring
Organizations of the Treadway Commission.) What should the company do to establish a
foundation according to the COSO's representation of the monitoring process?
A) Set the tone at the top.
B) Implement monitoring procedures.
C) Prioritize risks.
D) Establish a risk committee led by a senior executive.
Correct Answer: A) Set the tone at the top.
Rationale: According to COSO's monitoring process, the foundation for effective
monitoring is a strong control environment, which starts with "tone at the top" from
leadership. This sets the ethical and control-conscious culture.
WGU D560 Internal Auditing I OA | Objective Assessment | 59
Questions and Answers | 2026 New Update | 100% Correct.
Testbankscove
➢
➢
➢
➢
➢
,Page 1
Question 1
An internal auditor uses an audit software tool to deeply examine the company's billing
history for the past year and evaluate the accuracy of billing figures and terms against
the respective sales contracts. The auditor also uses the tool to evaluate the accounts
payable, payroll, and expenses to gather insights into the outbound cash flow. Which
technique is the auditor using for the evaluation?
A) Cluster analysis
B) Data analytics
C) Systems software control
D) Market research
Correct Answer: B) Data analytics
Rationale: Data analytics involves examining large datasets to uncover patterns,
anomalies, and insights. Here, the auditor analyzes billing, payables, payroll, and
, expenses to evaluate accuracy and cash flow, which is a classic application of data
analytics in auditing.
Question 2
Who has a third-line role in a company according to the Institute of Internal Auditors'
Three Lines Model?
A) The chief financial officer who manages budgets
B) The senior marketing executive who leads sales strategies
C) The head of human resources who oversees staffing
D) The chief audit executive who leads the internal audit function
Correct Answer: D) The chief audit executive who leads the internal audit function
Rationale: In the IIA Three Lines Model, the third line provides independent and objective
assurance. The internal audit function, led by the chief audit executive, fulfills this role.
The other options are first-line (operational) or second-line (oversight) roles.
Page 2
Question 3
A company is developing a monitoring process for its system of internal controls
following the COSO's framework. (COSO stands for the Committee of Sponsoring
Organizations of the Treadway Commission.) What should the company do to establish a
foundation according to the COSO's representation of the monitoring process?
A) Set the tone at the top.
B) Implement monitoring procedures.
C) Prioritize risks.
D) Establish a risk committee led by a senior executive.
Correct Answer: A) Set the tone at the top.
Rationale: According to COSO's monitoring process, the foundation for effective
monitoring is a strong control environment, which starts with "tone at the top" from
leadership. This sets the ethical and control-conscious culture.
