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IIA Practice of Internal Auditing Sample Questions (Q133-Q138):
NEW QUESTION # 133
Which statistical sampling approach would an internal auditor typically utilize if she wishes to test for fraud and the expected deviation rate is very low?
- A. Haphazard sampling
- B. Attribute sampling
- C. Discovery sampling
- D. Stratified sampling
Answer: B
NEW QUESTION # 134
Which of the following actions by management would reduce an employee's opportunity to commit fraud?
- A. Defining ethical behavior expectations in the company handbook.
- B. Identifying consequences, such as termination, for fraudulent activities.
- C. Establishing physical controls over company assets.
- D. Eliminating bonuses tied to sales or other performance goals.
Answer: C
NEW QUESTION # 135
Ordinarily, which of the following would not be an objective of an internal audit quality assurance review?
- A. Ensuring that the internal audit activity has an audit charter approved by the board of directors.
- B. Complying with specific standards for the professional practice of internal auditing.
- C. Ensuring the adequacy of the goals, mission and vision of the internal audit activity.
- D. Ensuring that the internal audit activity meets the external auditor's expectations.
Answer: D
NEW QUESTION # 136
When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?
- A. Impact of and exposure to fraud.
- B. Management's risk appetite.
- C. Existence of evidence of fraud.
- D. Organizational structure.
Answer: A
Explanation:
Section: Volume C
NEW QUESTION # 137
During an audit of an ethics program, which of the following procedures are most appropriate to evaluate the effectiveness of the program?
* Testing whether corrective actions taken on involved parties breaching the ethics program are adequate.
* Testing whether all employees are mandated through policy to comply with the ethics program.
* Testing whether all employees are required to confirm in writing their compliance with the ethics program.
* Testing through surveys employee's level of understanding and commitment to the ethics program.
- A. 3 and 4 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1 and 4 only
Answer: D
Explanation:
Section: Volume C
Explanation/Reference:
NEW QUESTION # 138
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