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IIA Practice of Internal Auditing Sample Questions (Q312-Q317):

NEW QUESTION # 312
According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

A. Local law enforcement should be involved as they are more familiar with the applicable local laws.
B. Cultural impacts are less critical where the organization practices uniform polices around the globe.
C. Communication of any internal ethics violations to external parties may occur with appropriate safeguards.
D. Cross-cultural differences should always be handled by the staff of the same cultural background.

Answer: C

Explanation:
According to IIA guidance, when the internal audit activity investigates potential ethics violations in a foreign subsidiary, communication of any internal ethics violations to external parties may occur, but only with appropriate safeguards. This ensures that sensitive information is protected and that the organization complies with both local and international legal requirements. Cross-cultural differences and local laws must be considered, but the primary focus is on maintaining appropriate safeguards during communication. Reference: IIA Practice Guide - Auditing Ethics Programs, IIA Standard 2440 - Disseminating Results

NEW QUESTION # 313
Management requested internal audit consulting services. During fieldwork significant control issues were identified by the internal audit team. Which of the following is an appropriate response from the chief audit executive?

A. Mutually agree with the engagement client on corrective actions
B. Focus on the consulting engagement and schedule an assurance engagement next to address the control issues
C. Report the significant control issues to senior management and the board and recommend corrective action
D. End the consulting engagement and report the results to management as planned

Answer: C

Explanation:
When significant control issues are identified during a consulting engagement, it is the responsibility of the chief audit executive to ensure that these issues are communicated to senior management and the board. This ensures that the organization is aware of the risks and can take corrective action. Consulting engagements should not overshadow the priority of addressing critical control issues that may affect the organization's risk profile. References:
* "International Standards for the Professional Practice of Internal Auditing" (IIA Standards)
* "Internal Auditing: Assurance & Advisory Services" (The Institute of Internal Auditors)

NEW QUESTION # 314
According to IIA guidance, which of the following statements are true regarding the internal audit plan?
1. The audit plan is based on an assessment of risks to the organization.
2. The audit plan is designed to determine the effectiveness of the organization's risk management process.
3. The audit plan is developed by senior management of the organization.
4. The audit plan is aligned with the organization's goals.

A. 1 and 2 only
B. 1, 2, and 4
C. 1, 3, and 4
D. 3 and 4 only

Answer: B

NEW QUESTION # 315
Which of the following statements is true regarding the audit objective for an assurance engagement?

A. Operational management must determine the audit objective in cooperation with the internal auditor
B. The audit objective may or may not consider the possibility of fraud depending on the assessed likelihood and impact
C. The audit objective must consider the possibility of fraud and noncompliance
D. The audit objective may be adjusted after the start of an engagement and it does not need to align with the assessed risks

Answer: C

NEW QUESTION # 316
Upon concluding the engagement fieldwork an internal auditor discusses the audit findings with operational management There is a greater likelihood that the auditor will obtain a responsive action plan from management when both parties agree on which of the following attributes of the audit finding?

A. Condition
B. Effect
C. Cause
D. Criteria

Answer: B

NEW QUESTION # 317
......

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