NO.310 Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?

NO.311 New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management’s data and information provide:

NO.312 Which of the following best demonstrates that an internal auditor is applying due professional care when planning an assurance engagement?

NO.313 Which of the following is not part of the five-attribute approach to developing documentation for an audit observation?

NO.314 Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

NO.315 According to the International Professional Practices Framework, a primary purpose of evaluating the adequacy of an organization’s risk management, control, and governance processes is to determine if it:

NO.316 Which of the following combinations of conditions is most likely a red flag for fraud?

NO.317 Which of the following situations would most likely result in the auditor in charge (AIC) recommending that the staff auditor further investigate non-compliant items?

NO.318 Which of the following techniques should an internal auditor use in order to conduct an effective interview?

NO.319 During an audit engagement, an internal auditor finds that management is not complying with previous commitments made to the external auditors. However, the auditor determines management’s actions to be justified due to significant changes in the business. The best course of action for the auditor to take would be to:

NO.320 Which of the following factors affects the control risk of a company?

NO.321 The primary reason that a bank would maintain a separate compliance function is to:

NO.322 An internal auditor is planning an operational audit of the accounts payable function. Which of the following best mitigates the risk of the organization being a victim of disbursement fraud by employees?

NO.323 Which of the following scenarios would most significantly restrict the areas where internal audit could perform assurance services?

NO.324 Which of the following topics would a chief audit executive most likely include with their report to the board?

NO.325 Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
1.Company A exhibits a higher standard of ethical behavior than does company B.
2.Company A has established objective criteria by which an employee’s actions can be evaluated.
3.The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.

NO.326 A fraud investigation was completed by management, and a proven fraud was communicated to relevant authorities. According to MA guidance, which of the following roles would be most appropriate for the internal audit activity to undertake after the investigation?

NO.327 Which of the following scenarios best demonstrates the application of internal audit proficiency?

NO.328 A manufacturing organization’s chief audit executive (CAE) was approached by the head of security from one of the manufacturer’s third party suppliers The head of security requested internal audit records from a recent audit engagement involving the third-party supplier The head of security believed those records contained information that would enable to identify employees of the third-party supplier who may be involved m fraudulent activities What is the most appropriate course of action for the CAE?

NO.329 A company has entered into a $20, 000, 000 fixed-price contract with a general contractor for the construction of a new retail outlet. For this contract, which of the following would represent the greatest risk?

NO.330 In selecting a team to perform an internal audit of a purchasing operation, which of the following characteristics would not preclude an auditor from being selected?
The auditor’s spouse is employed by the clerical section of the purchasing records
unit.
The auditor had been a purchasing agent five years earlier.
The auditor’s family owns a business that regularly sells goods to the organization.
The auditor has received a desk calendar as a promotional gift from a vendor.

NO.331 Feedback on engagements from audit clients, annual benchmarking of the internal audit activity’s (IAA’s) performance against best practice, and analyses of project budgets and audit plan completion are all tools that can best be used by the IAA for which purpose?

NO.332 When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?
1. Findings of the last audit engagement performed.
2. Probability of significant errors, irregularities, or noncompliance.
3. Extent of work needed to achieve engagement objectives.
4. Cost of the engagement versus the potential benefits.

NO.333 Which of the following controls within a spreadsheet would address the risk of logic errors?
1. The spreadsheet contains formulas that foot and cross-foot data.
2. The spreadsheet is locked to protect cell formulas from being inadvertently changed.
3. Spreadsheets are included in nightly backup processes.
4. Check-in and check-out software is used to manage version control.