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…
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.…
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…
According to the International Professional Practices Framework, internal auditors should possess which of the following competencies? A. 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…
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…
According to IIA guidance, which of the following must the internal auditor consider to meet the requirements for due professional care? A. The training courses necessary to enhance the internal auditor’s knowledge, skills, and other competencies. B. The appropriateness of…
An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls? A. Preventive controls. B.…
Which of the following is most likely to function as a directive control? A. Security dogs. B. Alert employees. C. Insurance claims. D. Cycle counts.
According to COSO, which of the following is not considered one of the components of an organization’s internal environment? A. Authority and responsibility to resolve issues. B. Framework to plan, executeand monitor activities. C. Integrated responses to multiple risks. D.…
The top three sales representatives for a company consistently include non-allowable charges on their expense reports. Line management is reluctant to deny reimbursement of the charges for fear of losing the sales representatives. This situation has the greatest negative impact…