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NEW QUESTION 50
While auditing an organization’s credit approval process, an internal auditor learns that the organization has made a large loan to another auditor’s relative. Which course of action should the auditor take?
- A. Proceed with the audit engagement, but do not include the relative’s information.
- B. Immediately withdraw from the audit engagement.
- C. Disclose in the engagement final communication that the relative is a customer.
- D. Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.
Answer: D
NEW QUESTION 51
According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?
1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.
2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.
3. The application of technology-based audit and other data analysis techniques, where appropriate.
4. The relative complexity and extent of work needed to achieve the engagement’s objectives.
- A. 1, 3, and 4
- B. 1, 2, and 3
- C. 1, 2, and 4
- D. 2, 3, and 4
Answer: C
NEW QUESTION 52
According to IIA guidance, when preparing the charter for the internal audit activity, the chief audit executive (CAE), board, and senior management should agree on which of the following?
1. The standards to be used by the internal audit activity.
2. The internal audit activity’s code of ethics.
3. The CAE’s reporting line.
4. The internal audit activity’s responsibilities.
- A. 1 and 2 only.
- B. 3 and 4.
- C. 4 only.
- D. 1,2, and 3.
Answer: B
NEW QUESTION 53
Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?
1. Periodically report about the accounting standards followed by the organization.
2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.
3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.
4. Maintain open and effective communications with the audit committee.
- A. 1, 3, and 4 only
- B. 1 and 2 only
- C. 2, 3, and 4 only
- D. 3 and 4 only
Answer: C
NEW QUESTION 54
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