NO.95 Which of the following statements is true regarding the independent peer review process undertaken to fulfill the requirement for an external quality assessment?

NO.96 Which of the following actions should the organization’s governing body perform to provide the most effective governance over the organization’s culture?

NO.97 Which of the following would be the least desirable criteria against which to judge current operations of a company’s treasury function?

NO.98 A government agency’s policy states that board members’ travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?

NO.99 An internal audit activity’s work schedule should always provide sufficient information to the audit committee to enable it to determine whether the proposed engagements:

NO.100 The board of directors of a global organization has found an increased number of reported cases of unethical practices since last year. To assist the board in gaining a better understanding of the degree of ethics awareness within the organization, which of the following actions should be undertaken?

NO.101 A production division received 45 responses to a customer-service survey distributed to 100 purchasing departments randomly selected from all customers who made purchases in the prior 12 months. Which of the following is the most likely reason that the division manager would be concerned about nonresponse bias in this situation?

NO.102 The chairperson of an organization’s audit committee has obtained a risk management report that identifies significant industry concerns that impact the organization. The chairperson has asked the chief audit executive (CAE) to review these concerns and advise if they are relevant to the organization.
How should the CAE respond?

NO.103 Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?

NO.104 According to NA guidance, which of the following is true regarding typical fraud schemes?
1. A diversion occurs when an employee has an undisclosed personal economic interest in a transaction that adversely affects
the organization.
2. Tax evasion is intentional reporting of false or misleading information on a tax return by an organization to reduce taxes owed.
3. Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s
records.
4, Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services.

NO.105 An auditor is using audit software to check inventory accuracy.
Which of the following would be an indicator of poor input edit controls?

NO.106 According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity?
1. Consult on CSR program design and implementation.
2. Serve as an advisor on CSR governance and risk management.
3. Review third parties for contractual compliance with CSR terms.
4. Identify and mitigate risks to help meet the CSR program objectives.

NO.107 Which of the following data collection strategies systematically tests the effects of various factors on an outcome?

NO.108 In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers’ accounts?

NO.109 An internal auditor needs to recommend a policy element to be included in an organization’s code of ethics. Which of the following recommendations would be most effective?

NO.110 An internal auditor is providing consulting services on an area he was responsible for three years ago. Part of the consulting scope covers a review of a performance measuring system that the auditor helped to develop. What is the best course of action for the auditor to take concerning the consulting service?

NO.111 An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.
Upon being informed, the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.
Which course of action should the CAE follow?

NO.112 In its five years of existence, an internal audit activity conducted a single internal assessment of its quality assurance and improvement program (QAIP). The results of that assessment showed that the internal audit activity did not conform with the Standards. Prior to this, an external assessment of the internal audit activity’s QAIP was conducted, which reported that the internal audit activity was in conformance with the Standards. Considering the two assessments, what would be the internal audit activity’s current state of conformance with the Standards?

NO.113 Which of the following controls would best mitigate the risk of fraud in the bidding process?

NO.114 Auditors 1, 2, and 3 work out of various offices. Each must be assigned to one, and only one, of three audit locations (A, B, or C). The cost of sending each auditor to each location is listed below:
Audit Locations
Auditor 1
A
B
C
Auditor 2
$200
$300
$400
Auditor 3
$400
$300
$600
Auditor 4
$200
$200
$500
The minimum cost with which this assignment can be accomplished is:

NO.115 Using the internal audit department to coordinate regulatory examiners’ efforts is beneficial to the organization because internal auditors can:

NO.116 The internal audit activity’s role in the risk assessment and management processes of an organization is determined by the: