If an internal auditor discloses confidential information in response to a lawsuit, the internal auditor has violateD. A. The IIA Code of Ethics. B. The Standards. C. Both the IIA Code of Ethics and the Standards. D. Neither the IIA Code of Ethics nor the Standards.

An auditor plans to analyze customer satisfaction, includinG. (1) customer complaints recorded by the customer service department during the last three months; (2) merchandise returned in the last three months; and (3) responses to a survey of customers who made purchases in the last three months. Which of the following statements regarding this audit approach […]

Which of the following statements regarding segregation of duties is true? A. When evaluating an organization’s policy on segregation of duties, employee competence does not need to be considered. B. An organizational chart provides an accurate definition of segregation of duties. C. A restrictive segregation-of-duties policy can help improve an organization’s communication. D. Policies on […]

During the planning phase of an audit of suspected overbilling on contracts for security services, an auditor should perform all of the following except: A. Interviewing an official of the security services company to determine the cause of recent increases in billings for services. B. Interviewing the manager who requested the audit engagement. C. Obtaining […]

Which of the following lists the audit activities in the order in which they would generally be completed during a preliminary survey? I. Write detailed audit procedures. II. Identify client objectives, goals, and standards. III. Identify risks and controls intended to prevent associated losses. IV. Determine relevant engagement objectives. A. II, I, IV, III. B. […]

Which of the following is not an appropriate role for internal auditors after a disaster occurs? A. Monitor the effectiveness of the recovery and control of operations. B. Correct deficiencies of the entity’s business continuity plan. C. Recommend future improvements to the entity’s business continuity plan. D. Assist in the identification of lessons learned from […]

According to the International Professional Practices Framework, internal auditors should possess which of the following competencies? I. Proficiency in applying internal auditing standards, procedures, and techniques. II. Proficiency in accounting principles and techniques. III. An understanding of management principles. IV. An understanding of the fundamentals of economics, commercial law, taxation, finance, and quantitative methods. A. […]

An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. The best control to ensure that the table is updated correctly for only valid pay changes would be to: A. Limit access to the data table to management […]

A high-volume retailer of consumer goods has used point-of-sale data to record sales and update inventory records for several years. When price changes are scheduled, corporate headquarters downloads a price change file to a computer server system at each store. Each store’s assistant manager is responsible for checking the server for downloads and running the […]

According to the Standards, the organizational status of the internal audit activity: A. Must be sufficient to permit the accomplishment of its audit responsibilities. B. Is best when the reporting relationship is direct to the board of directors. C. Requires the board’s annual approval of the audit schedules, plans, and budgets. D. Is guaranteed when […]