CIA 2
Independence is freedom from conditions that threaten the ability of the internal audit
activity to carry out internal audit responsibilities in an unbiased manner. Which policy
best promotes independence? - ANS-Requiring internal auditors to report to the chief
audit executive any conflicts of interest or bias.
The internal audit activity collectively must possess or obtain certain competencies,
including proficiency in - ANS-Internal audit procedures and techniques.
What is the most appropriate preventive measure for staff communication problems with
engagement clients? - ANS-Provide staff with sufficient training to enhance
communication skills.
Which of the following statements is true with respect to due professional care? -
ANS-An engagement communication should never be viewed as providing an infallible
truth about a subject
A chief audit executive has reviewed credentials, checked references, and interviewed a
candidate for a staff position. The CAE concludes that the candidate has a thorough
understanding of internal audit techniques, accounting, and finance. However, the
candidate has limited knowledge of economics and information technology. Which
action is most appropriate? - ANS-Offer the candidate a position if other staff members
possess sufficient knowledge in economics and information technology.
An activity appropriately performed by the internal audit activity is - ANS-Reviewing
systems of control before implementation.
The internal audit activity collectively must possess or obtain certain competencies,
including an understanding of - ANS-Management principles.
The internal audit activity collectively must possess or obtain certain competencies,
including an appreciation of - ANS-Accounting principles and techniques
Which of the following is a true statement regarding the timing of assessments of
individual objectivity on the part of internal auditors? - ANS-It is performed at the
discretion of the CAE.
, Use of external service providers with expertise in healthcare benefits is appropriate
when the internal audit activity is - ANS-All of the answer are correct
In which of the following situations does an internal auditor potentially lack objectivity? -
ANS-A former purchasing assistant performs a review of internal controls over
purchasing 4 months after being transferred to the internal auditing department.
Communication skills are important to internal auditors. They should be able to convey
effectively all of the following to engagement clients except - ANS-The risk assessment
used in selecting the area for investigation
When hiring entry-level internal auditing staff, which of the following will most likely
predict the applicant's success as an internal auditor? - ANS-Ability to organize and
express thoughts well.
A quality assurance and improvement program of an internal audit activity provides
reasonable assurance that internal auditing work is performed in accordance with its
charter. Which of the following are designed to provide feedback on the effectiveness of
an internal audit activity? - ANS-1,3,and4 only
The major reason for the internal auditor's involvement in information systems
development is for the internal auditor to - ANS-Help assure that systems have
adequate control procedures.
The board is most likely to participate in approving - ANS-Appointment of the chief audit
executive.
Which of the following activities is not presumed to impair the objectivity of an internal
auditor? - ANS-1 and 3.
Which of the following most seriously compromises confidence in the internal audit
activity? - ANS-Internal auditors frequently draft revised procedures for departments
whose procedures have been criticized in an engagement communication.
Internal auditing is unique in that its scope often encompasses all areas of an
organization. Thus, it is not possible for each internal auditor to possess detailed
competence in all areas that might be the subject of engagements. Which of the
following competencies must the internal audit activity possess collectively? -
ANS-Understanding of management principles.
Independence is freedom from conditions that threaten the ability of the internal audit
activity to carry out internal audit responsibilities in an unbiased manner. Which policy
best promotes independence? - ANS-Requiring internal auditors to report to the chief
audit executive any conflicts of interest or bias.
The internal audit activity collectively must possess or obtain certain competencies,
including proficiency in - ANS-Internal audit procedures and techniques.
What is the most appropriate preventive measure for staff communication problems with
engagement clients? - ANS-Provide staff with sufficient training to enhance
communication skills.
Which of the following statements is true with respect to due professional care? -
ANS-An engagement communication should never be viewed as providing an infallible
truth about a subject
A chief audit executive has reviewed credentials, checked references, and interviewed a
candidate for a staff position. The CAE concludes that the candidate has a thorough
understanding of internal audit techniques, accounting, and finance. However, the
candidate has limited knowledge of economics and information technology. Which
action is most appropriate? - ANS-Offer the candidate a position if other staff members
possess sufficient knowledge in economics and information technology.
An activity appropriately performed by the internal audit activity is - ANS-Reviewing
systems of control before implementation.
The internal audit activity collectively must possess or obtain certain competencies,
including an understanding of - ANS-Management principles.
The internal audit activity collectively must possess or obtain certain competencies,
including an appreciation of - ANS-Accounting principles and techniques
Which of the following is a true statement regarding the timing of assessments of
individual objectivity on the part of internal auditors? - ANS-It is performed at the
discretion of the CAE.
, Use of external service providers with expertise in healthcare benefits is appropriate
when the internal audit activity is - ANS-All of the answer are correct
In which of the following situations does an internal auditor potentially lack objectivity? -
ANS-A former purchasing assistant performs a review of internal controls over
purchasing 4 months after being transferred to the internal auditing department.
Communication skills are important to internal auditors. They should be able to convey
effectively all of the following to engagement clients except - ANS-The risk assessment
used in selecting the area for investigation
When hiring entry-level internal auditing staff, which of the following will most likely
predict the applicant's success as an internal auditor? - ANS-Ability to organize and
express thoughts well.
A quality assurance and improvement program of an internal audit activity provides
reasonable assurance that internal auditing work is performed in accordance with its
charter. Which of the following are designed to provide feedback on the effectiveness of
an internal audit activity? - ANS-1,3,and4 only
The major reason for the internal auditor's involvement in information systems
development is for the internal auditor to - ANS-Help assure that systems have
adequate control procedures.
The board is most likely to participate in approving - ANS-Appointment of the chief audit
executive.
Which of the following activities is not presumed to impair the objectivity of an internal
auditor? - ANS-1 and 3.
Which of the following most seriously compromises confidence in the internal audit
activity? - ANS-Internal auditors frequently draft revised procedures for departments
whose procedures have been criticized in an engagement communication.
Internal auditing is unique in that its scope often encompasses all areas of an
organization. Thus, it is not possible for each internal auditor to possess detailed
competence in all areas that might be the subject of engagements. Which of the
following competencies must the internal audit activity possess collectively? -
ANS-Understanding of management principles.
