Question 1

According to The MA Code of Ethics, which of the following is one of the rules of conduct for objectivity?

Accepted Answer

Correct answer: C

Question 2

According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing department?
* 1. Obtain and review all purchasing-related audit reports issued within the past year.
* 2. Meet with the quality assurance group to discuss its previous reports of any purchasing- related findings.
* 3. Review a memo written by the purchasing manager that outlines ongoing problems with the purchasing software.
* 4. Request a copy of the report from a purchasing audit conducted last year by an external service provider.

Accepted Answer

Correct answer: A

Question 3

When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?
* 1. Subsequent change orders increase requirements for low-bid items.
* 2. Material contract requirements are different on the actual contract than on the request for bids.
* 3. A high percentage of employees are charged to indirect accounts.
* 4. Losing bidders are hired as subcontractors.

Accepted Answer

Correct answer: D

Question 4

Which of the following is not an objective of internal control?

Accepted Answer

Correct answer: D

Question 5

According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit
engagement results and conclusions?

Accepted Answer

Correct answer: A

Question 6

An internal auditor is conducting an assessment of the organization's fraud prevention program using the COSO enterprise risk management framework.
According to this framework, which of the following activities would fall under the control environment component for preventing fraud?
* 1. The organization uses an automated authority approval matrix to control payments.
* 2. The organization has a whistleblower hotline that is available to employees.
* 3. Annually, every manager completes a comprehensive fraud assessment of his or her department.
* 4. Annually, the organization reviews and communicates the code of expected behavior.

Accepted Answer

Correct answer: D

Question 7

Which of the following is an example of a detective control?

Accepted Answer

Correct answer: C

Question 8

An IT contractor applied for an internal audit position at a bank. The contractor worked for the bank's IT security manager two years ago. If the audit manager
interviewed the contractor and wants to extend a job offer, which of the following actions should the chief audit executive pursue?

Accepted Answer

Correct answer: A

Question 9

If appropriate safeguards exist, which of the following is considered a legitimate internal audit role within risk management at an organization?

Accepted Answer

Correct answer: B

Question 10

According to The MA Global Internal Audit Competency Framework, which of the following areas of training would best assist the internal audit activity in improving
its use of tools and techniques?

Accepted Answer

Correct answer: B