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IIA Essentials of Internal Auditing Sample Questions (Q316-Q321):

NEW QUESTION # 316
The chief audit executive of a large national retailer is reviewing the purpose and objectives of the organization's internal audit activity
Which of the following objectives is best aligned with The IIA's Mission of Internal Audit?

A. To ensure internal auditors possess the competencies needed to perform their responsibilities
B. To operate within the budget established by the board of directors
C. To assess the effectiveness of internal controls over organizational assets
D. To implement a quality assurance and improvement program

Answer: B

NEW QUESTION # 317
Which of the following is an example of a preventive control activity for risk related to pollution caused by waste disposal?

A. Taking periodic samples of the area at risk and logging the results.
B. Seeking legal consultation from a firm with experience in environmental law.
C. Maintaining strict security around environmental department files.
D. Offering an education program delivered by environmental experts.

Answer: D

NEW QUESTION # 318
A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

A. From acceptance to avoidance.
B. From sharing to reduction.
C. From sharing to avoidance.
D. From acceptance to reduction.

Answer: B

NEW QUESTION # 319
Which of the following represents the most useful function of inventory turnover analysis?

A. Identifying excess inventory, including obsolete inventory.
B. Creating new staffing positions for inventory support.
C. Determining the best supplier of raw materials based on cost comparison.
D. Developing more efficient methods for manufacturing finished products.

Answer: A

NEW QUESTION # 320
Which of the following should an internal auditor possess in order to fulfill the responsibilities of the internal audit activity?

A. Proficiency in accounting principles in order to conduct fraud investigations.
B. An understanding of management principles in order to evaluate deviations from good practices.
C. An appreciation of internal audit standards in order to recognize problems.
D. Proficiency in applying management principles in order to stand in for the chief financial officer.

Answer: B

Explanation:
Section: Volume C

NEW QUESTION # 321
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