INTERNAL AUDIT EXAM 2 SU 2 COMBINED
WITH VALID ANSWERS
The rprimary rdifference rbetween roperational rengagements rand rfinancial rengagements
ris rthat, rin rthe rlatter, rthe rinternal rauditors
rA. rAre rnot rconcerned rwith rwhether rthe rclient rentity ris rgenerating rinformation rin
rcompliance rwith rfinancial raccounting rstandards.
rB. rAre rseeking rto rhelp rmanagement ruse rresources rin rthe rmost reffective rmanner
rpossible.
rC. rCan ruse ranalytical rskills rand rtools rthat rare rnot rnecessary rin rfinancial
rengagements.
D. rStart rwith rthe rfinancial rstatements rof rthe rclient rentity rand rwork rbackward rto rthe
rbasic rprocesses rinvolved rin rproducing rthem. r- rCORRECT✅✅Correct rD. rStart rwith
rthe rfinancial rstatements rof rthe rclient rentity rand rwork rbackward rto rthe rbasic
rprocesses rinvolved rin rproducing rthem.
A rdetermination rof rcost rsavings ris rmost rlikely rto rbe ran robjective rof ra(n)
rA. rProgram-results rengagement.
rB. rFinancial rengagement.
rC. rCompliance rengagement.
D. rOperational rengagement. r- rCORRECT✅✅Correct rD. rOperational rengagement.
Which rof rthe rfollowing rprocedures ris rthe rmost rvaluable rin ran rengagement rinvolving
rthe rtraffic rdepartment roperations rof ra rlarge rmanufacturer?
rA. rObtain rwritten rconfirmation rfrom rthe rregulatory ragencies rthat rall rcarriers rused
rare rproperly rlicensed rand rbonded.
B. rReview rprocedures rfor rselection rof rroutes rand rcarriers.
C. rTrace rselected ritems rfrom rthe rweekly rdemurrage r(car rdetention rcharge) rreport rto
rsupporting rdocumentation.
rD. rVerify rthat rall rbills rof rlading rare rprenumbered. r- rCORRECT✅✅Correct rB.
rReview rprocedures rfor rselection rof rroutes rand rcarriers.
Which rof rthe rfollowing ractivities ris routside rthe rscope rof rinternal rauditing?
rA. rEvaluating rrisk rexposures rregarding rcompliance rwith rpolicies, rprocedures, rand
rcontracts.
B. rSafeguarding rof rassets.
rC. rEvaluating rrisk rexposures rregarding rcompliance rwith rlaws rand rregulations.
rD. rAscertaining rthe rextent rto rwhich rmanagement rhas restablished rcriteria rto
rdetermine rwhether robjectives rhave rbeen raccomplished. r- rCORRECT✅✅Correct rB.
rSafeguarding rof rassets.
, Which rof rthe rfollowing rstatements rabout rcontrol rself-assessment r(CSA) ris rfalse?
A. rCSA ris rusually ran rinformal rand rundocumented rprocess.
rB. rIn rits rpurest rform, rCSA rintegrates rbusiness robjectives rand rrisks rwith rcontrol
rprocesses.
rC. rCSA ris ralso rknown ras rcontrol/risk rself-assessment.
rD. rMost rimplemented rCSA rprograms rshare rsome rkey rfeatures rand rgoals. r-
rCORRECT✅✅Correct rA. rCSA ris rusually ran rinformal rand rundocumented rprocess.
Which rtype rof rfacilitated rapproach rformat rbegins rby rlisting rall rpossible rbarriers,
robstacles, rthreats, rand rexposures rthat rmight rprevent rachieving ran robjective?
rA. rObjective-based rformat.
rB. rControl-based rformat.
rC. rProcess-based rformat.
rD. rRisk-based rformat. r- rCORRECT✅✅Correct rD. rRisk-based rformat.
The relement(s) rof ra rcontrol rself-assessment r(CSA) rperformed rusing rone rof rthe
rfacilitated rteam rworkshop rapproaches rinclude(s)
1. rTreating rparticipating remployees ras rprocess rowners.
2. rTaking ra rsimple ryes/no rsurvey rof remployees rregarding rrisks rand rcontrols.
3. rInterviewing remployees rseparately rin rthe rfield.
rA. r1 ronly.
rB. r2 ronly.
rC. r2 rand r3.
rD. r1, r2, rand r3. r- rCORRECT✅✅Correct rA. r1 ronly.
Control rself-assessment r(CSA) ris ra rmethod rfor rexamining rand revaluating rthe
rorganization's rsystem rof rcontrol, rwhich rincludes
rA. rRisk ranalysis.
rB. rSelf-assessment rapproaches.
rC. rTraditional rinternal rauditing rconcepts.
rD. rAll rof rthe ranswers rare rcorrect. r- rCORRECT✅✅Correct rD. rAll rof rthe ranswers
rare rcorrect.
An rauditor ris rscheduled rto raudit rpayroll rcontrols rfor ran rorganization rthat rhas rrecently
routsourced rits rinformation rprocessing rto ran rexternal rservice rprovider r(ESP). rThe
rESP's rexternal rauditor rhas rissued rreports rpertaining rto rthe rESP's rcontrols rand
rmade rit rreadily ravailable rto rthe rinternal rauditor. rWhat raction rshould rthe rauditor rtake,
rconsidering rthe routsourcing rdecision?
rA. rReview ronly rthe rESP's rexternal rauditor.
WITH VALID ANSWERS
The rprimary rdifference rbetween roperational rengagements rand rfinancial rengagements
ris rthat, rin rthe rlatter, rthe rinternal rauditors
rA. rAre rnot rconcerned rwith rwhether rthe rclient rentity ris rgenerating rinformation rin
rcompliance rwith rfinancial raccounting rstandards.
rB. rAre rseeking rto rhelp rmanagement ruse rresources rin rthe rmost reffective rmanner
rpossible.
rC. rCan ruse ranalytical rskills rand rtools rthat rare rnot rnecessary rin rfinancial
rengagements.
D. rStart rwith rthe rfinancial rstatements rof rthe rclient rentity rand rwork rbackward rto rthe
rbasic rprocesses rinvolved rin rproducing rthem. r- rCORRECT✅✅Correct rD. rStart rwith
rthe rfinancial rstatements rof rthe rclient rentity rand rwork rbackward rto rthe rbasic
rprocesses rinvolved rin rproducing rthem.
A rdetermination rof rcost rsavings ris rmost rlikely rto rbe ran robjective rof ra(n)
rA. rProgram-results rengagement.
rB. rFinancial rengagement.
rC. rCompliance rengagement.
D. rOperational rengagement. r- rCORRECT✅✅Correct rD. rOperational rengagement.
Which rof rthe rfollowing rprocedures ris rthe rmost rvaluable rin ran rengagement rinvolving
rthe rtraffic rdepartment roperations rof ra rlarge rmanufacturer?
rA. rObtain rwritten rconfirmation rfrom rthe rregulatory ragencies rthat rall rcarriers rused
rare rproperly rlicensed rand rbonded.
B. rReview rprocedures rfor rselection rof rroutes rand rcarriers.
C. rTrace rselected ritems rfrom rthe rweekly rdemurrage r(car rdetention rcharge) rreport rto
rsupporting rdocumentation.
rD. rVerify rthat rall rbills rof rlading rare rprenumbered. r- rCORRECT✅✅Correct rB.
rReview rprocedures rfor rselection rof rroutes rand rcarriers.
Which rof rthe rfollowing ractivities ris routside rthe rscope rof rinternal rauditing?
rA. rEvaluating rrisk rexposures rregarding rcompliance rwith rpolicies, rprocedures, rand
rcontracts.
B. rSafeguarding rof rassets.
rC. rEvaluating rrisk rexposures rregarding rcompliance rwith rlaws rand rregulations.
rD. rAscertaining rthe rextent rto rwhich rmanagement rhas restablished rcriteria rto
rdetermine rwhether robjectives rhave rbeen raccomplished. r- rCORRECT✅✅Correct rB.
rSafeguarding rof rassets.
, Which rof rthe rfollowing rstatements rabout rcontrol rself-assessment r(CSA) ris rfalse?
A. rCSA ris rusually ran rinformal rand rundocumented rprocess.
rB. rIn rits rpurest rform, rCSA rintegrates rbusiness robjectives rand rrisks rwith rcontrol
rprocesses.
rC. rCSA ris ralso rknown ras rcontrol/risk rself-assessment.
rD. rMost rimplemented rCSA rprograms rshare rsome rkey rfeatures rand rgoals. r-
rCORRECT✅✅Correct rA. rCSA ris rusually ran rinformal rand rundocumented rprocess.
Which rtype rof rfacilitated rapproach rformat rbegins rby rlisting rall rpossible rbarriers,
robstacles, rthreats, rand rexposures rthat rmight rprevent rachieving ran robjective?
rA. rObjective-based rformat.
rB. rControl-based rformat.
rC. rProcess-based rformat.
rD. rRisk-based rformat. r- rCORRECT✅✅Correct rD. rRisk-based rformat.
The relement(s) rof ra rcontrol rself-assessment r(CSA) rperformed rusing rone rof rthe
rfacilitated rteam rworkshop rapproaches rinclude(s)
1. rTreating rparticipating remployees ras rprocess rowners.
2. rTaking ra rsimple ryes/no rsurvey rof remployees rregarding rrisks rand rcontrols.
3. rInterviewing remployees rseparately rin rthe rfield.
rA. r1 ronly.
rB. r2 ronly.
rC. r2 rand r3.
rD. r1, r2, rand r3. r- rCORRECT✅✅Correct rA. r1 ronly.
Control rself-assessment r(CSA) ris ra rmethod rfor rexamining rand revaluating rthe
rorganization's rsystem rof rcontrol, rwhich rincludes
rA. rRisk ranalysis.
rB. rSelf-assessment rapproaches.
rC. rTraditional rinternal rauditing rconcepts.
rD. rAll rof rthe ranswers rare rcorrect. r- rCORRECT✅✅Correct rD. rAll rof rthe ranswers
rare rcorrect.
An rauditor ris rscheduled rto raudit rpayroll rcontrols rfor ran rorganization rthat rhas rrecently
routsourced rits rinformation rprocessing rto ran rexternal rservice rprovider r(ESP). rThe
rESP's rexternal rauditor rhas rissued rreports rpertaining rto rthe rESP's rcontrols rand
rmade rit rreadily ravailable rto rthe rinternal rauditor. rWhat raction rshould rthe rauditor rtake,
rconsidering rthe routsourcing rdecision?
rA. rReview ronly rthe rESP's rexternal rauditor.
