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| Section | Weight | Objectives |
|---|---|---|
| Fraud Risks and Controls | 15% | - Fraud risk assessment - Fraud prevention and detection controls - Types and indicators of fraud - Internal audit responsibilities regarding fraud |
| Foundations of Internal Auditing | 35% | - International Professional Practices Framework (IPPF) - Quality assurance and improvement program - Global Internal Audit Standards - Competence and due professional care - Independence and objectivity - Definition and purpose of internal auditing |
| Governance, Risk Management, and Control | 30% | - Risk management processes and techniques - Assessing adequacy and effectiveness of controls - Role of internal audit in governance, risk, and control - Governance principles and frameworks - Internal control concepts and frameworks |
| Ethics and Professionalism | 20% | - Ethical dilemmas and resolution - IIA Code of Ethics - Confidentiality and integrity - Professional values and behavior |
1. Which of the following best ensures that the internal audit activity is free from undue interference from management?
A) Audit policies and procedures that are comprehensive and well-documented, in accordance with the Standards.
B) An audit charter that defines the chief audit executive's functional reporting relationship with the board.
C) A board audit committee that is composed of competent, independent members.
2. According to The IIA's Code of Ethics, which of the following best illustrates the principle of confidentiality?
A) The auditor declined to lead an audit of a department in which his nephew is the manager.
B) The auditor refused to use information learned during an audit to diversify his financial portfolio.
C) The auditor declined to delegate critical audit lead responsibilities to a new auditor.
3. Which of the following would provide the most reliable information on a process under review?
A) Documentation of a walkthrough conducted on the process under review
B) Testimonial evidence, such as survey responses, on the process under review
C) Benchmarking information on the process under review compared to similar industries or organizational units
4. During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization' s total budget. Which of the following best supports the auditor'srecommendation to reduce the level of reviews?
A) The inherent risk of travel expense fraud is low.
B) The duplication of effort in the review process is unnecessary.
C) The cost of the control outweighs the benefit.
5. Which of the following statements is true regarding engagement status meetings?
A) They are expected to enhance the relationships between the internal audit activity and management of the area under review.
B) They mainly involve one-way communication from the internal auditor to management of the area under review.
C) They should involve the chief audit executive and senior management.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: A |
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