A. The chief audit executive reports directly to the chief financial officer who previously led the internal audit activity

B. Internal auditors are prevented from accessing information necessary to undertake their audit engagements

C. Internal auditors are expected by senior management to identify a minimum of five major control weaknesses in each area audited

D. The CEO requests the internal audit activity develop a charter that clearly delineates its purpose and responsibilities within the organization

A. The risk and control model should be tailored to the organization that will be the subject of the engagement.

B. The risk and control model should be strictly adhered to in performing the engagement.

C. The risk and control model should be developed individually by the auditor for use on individual audit projects within the planned engagement.

D. The risk and control model should be globally accepted by the profession.

A. The charier should be re-approved every five years, in conjunction with the external quality assessment

B. The charier should be reviewed and resubmitted for board approval annually together with the audit plan

C. The charier should be revised and re-approved whenever a new chief audit executive (CAE) is appointed or at the request of the board

D. The charier can be revised at the discretion of the CAE whenever 4 is determined that its content no longer supports the achievement of objectives

A. Regulators mandate specific audit engagements to be included in the audit plan.

B. The internal audit activity reports administratively to the chief financial officer.

C. The internal audit activity reports administratively to the CEO and functionally to the audit committee.

D. The internal audit activity reports functionally to the chief financial officer

A. If it has been more than five years since the last external assessment was conducted, the Internal audit activity must cease indicating that it operates in conformance with the Standards.

B. An internal audit activity that has been in existence fewer than five years cannot Indicate that it is operating in conformance with the Standards because it has not yet undergone an external assessment.

C. Once an external assessment validates conformance with the Standards, the internal audit activity may continue to use the statement until the next external assessment.

D. The chief audit executive must disclose every instance of noncompliance with the Code of Ethics or the Standards.

A. Recommend mat the chief audit executive outsource the upcoming audit engagement

B. Proceed with the audit engagement in accordance with the internal audit manual

C. Declare a conflict of interest and hand over the engagement to another auditor

D. Increase the amount of fieldwork in order to build greater credibility for audit conclusions

A. The chief audit executive must formally review the charter at least once a year

B. The nature of consulting services typically is not included in the charter.

C. The charter typically defines the internal audit activity's position within the organization.

D. The nature of assurances provided to parties outside of the organization typically is not included in the charter.

A. Accounting personnel should conduct a periodic inventory count and reconcile all inventory movements.

B. Accounting personnel should regularly perform a reconciliation between invoices and purchase orders.

C. Internal auditors should review the frequency and volume of purchased assets to detect trends in the inventory levels.

D. Management should establish a policy requiring new inventory asset purchases to be made on serialized order forms with copies retained.

A. The auditor's demonstrated problem-solving skills

B. The auditor's ability to be self motivated and a good team player

C. The auditor's skills compared to those already possessed by other audit staff

D. The length and consistency of the auditor's work experience

A. Checking for invoice amounts that do not match that of the purchase order.

B. Running checks to uncover post office box addresses matching employee addresses.

C. Comparing prices across vendors to see whether one vendor is unreasonably high.

D. Searching for identical invoice numbers and payment amounts.