CIA Part 2 - Internal Audit Engagement v1.0

The chief financial officer initially asked the internal audit function to review the organization’s derivative practices. However, because the internal audit function lacks the necessary expertise, management decided to hire an external firm to conduct this review.
Which of the following describes the most appropriate course of action for the chief audit executive (CAE)?

Which of the following represents the best example of a strategic goal?

A senior internal auditor is leading a recurring assurance engagement of departmental processes. The most recent engagement was completed eleven months ago.
Which of the following would best help the auditor in determining key risks and controls to plan the current engagement?

An internal auditor is planning an assurance engagement and wants to perform analytics on relevant data. Which of the following would be the first step involved in the data analysis process?

A financial services organization's CEO requests that the internal audit function carry out fraud scenario testing over the supplier payment process. The engagement supervisor intends to identify these scenarios using a technique that motivates the sharing of ideas.
Which of the following provides the internal audit function with this information?

An internal audit engagement supervisor uncovers a critical finding that requires thorough investigation. However, the internal audit function does not have the specialized skills to conduct the investigation. What should the engagement supervisor do next?

An electric utility provider measures working time spent on processing grid connection applications, response time for electricity outages, and the call center queuing time. Which of the following criteria would better suit a customer-oriented provider for measurement?

The internal audit team judgmentally selected 60 of the 600 employee time sheets that were processed during the previous month to determine whether supervisors were properly approving time sheets in accordance with the organization's policies. The internal audit team found three exceptions.
Based on the audit test, which of the following is most appropriate for the internal audit team to conclude?

An internal auditor wants to test the processing logic of a computer application during a specific period to ensure consistent processing of transactions. Which of the following is the best approach to achieve the objective of the test?

Which of the following statements is true regarding different competitive strategies?

An internal auditor is reviewing the accuracy of commission payments by recalculating 100% of the commissions and comparing them to the amount paid. According to IIA guidance, which of the following actions is most appropriate for identified variances?

An engagement supervisor is explaining to a new internal auditor the need to use a workpaper checklist as part of reviewing her workpapers. Which of the following statements demonstrates the reason for using checklists during the supervisory review?

An internal auditor is conducting an assurance engagement in the procurement area. The auditor follows a checklist of tasks prepared for the engagement. During the process, the auditor notices some deviations from the procurement procedure requirements. However, these deviations are not directly linked to and do not prevent the auditor from completing the checklist tasks. So, the auditor does not investigate these deviations further.
Which checklist drawback most likely applies to this situation?

An internal auditor is planning an engagement in health and safety. Which of the following sources is the most suitable for understanding what has been defined as an acceptable level of risk in the organization?