Q270. An internal auditor would most likely judge an error in an account balance to be material if the error involves:

Q271. According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?

Q272. An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected. Which of the following best describes this risk strategy?

Q273. Two individuals are being considered for an audit team that is to perform a highly technical review. Which of the following situations would preclude selection of the individual for the audit due to an objectivity concern?
I. Person A is a member of the internal audit staff and has the required technical skills. Person A participated in a controls review of the system to be audited when it was being developed.
II. Person B is a technical specialist who understands the audit area but is not a member of the internal audit staff. Although person B has personal credibility in the information systems department to be audited, person B works for another department in the organization.

Q274. Which of the following statements best explains why internal auditors map processes?
To obtain audit evidence to support auditor’s observations.
To determine scope and objectives of the audit.
To facilitate the identification of ownership and responsibility for key risks.
To identify potential efficiency improvements.

Q275. During a payroll audit of a large organization, an auditor noted that the assistant personnel
director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing withinformation technology issues and felt obliged to support all actions taken by the assistant director. The auditor shoulD.

Q276. Which of the following statements, if true, could justify an auditor’s decision not to report governance-related control deficiencies to the audit committee?

Q277. According to IIA guidance, which of the following objectives of an assurance engagement for the organization’s risk management process is valid?

Q278. What is the primary purpose of a fishbone diagram?

Q279. Which of the following is a weakness of observation as audit evidence?

Q280. Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

Q281. Which of the following represents an example of an ethical issue that the organization should address’?

Q282. An internal audit activity encounters a scope limitation from senior management that will affect its ability to meet its goals and objectives for a potential engagement client. The nature of the scope limitation should be:

Q283. An internal auditor was assigned to work in the procurement department for six months to gam m-depth knowledge about the procurement process Which of the following personnel development practices was applied in this situation?

Q284. In order to ensure that the internal auditors have the objectivity required by the Standards, the chief audit executive should:

Q285. It is important for a chief audit executive to seek formal approval from the board regarding an internal audit charter so that:

Q286. Which of the following are components of the COSO enterprise risk management framework?
1. Objective setting.
2. External environment.
3. Data collection.
4. Control activities.

Q287. While attending a conference,an internal auditor won an all-expense paid trip sponsored by a vendor of the internal auditor’s organization.
Which of the following actions are most appropriate for the auditor to take?