Sometimes, internal audit staff may partner with operating managers to rank risks. Which of the following outcomes may be the most beneficial aspects of this strategy?
* 1. Reappraising risks levels.
* 2. Providing accurate information to management.
* 3. Marketing the internal audit activity.
* 4. Planning safeguards for assets in high-risk areas.
Correct Answer:
B
An internal auditor who is carrying out an engagement to review controls related to corporate tax reporting must possess which of the following competencies?
* 1. Proficiency in analyzing key IT risks and controls.
* 2. The ability to recognize significant deviations from good business practices.
* 3. Knowledge of key indicators of fraud in tax reporting.
* 4. The ability to recognize the existence of problems related to tax accounting.
Correct Answer:
B
Which of the following would not be considered part of preliminary survey of an engagement area?
Correct Answer:
D
The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance, which of the following qualitative metrics would be appropriate for the CAE to use?
* 1. Average client customer satisfaction score for a given year.
* 2. Client survey comments on how to improve the IAA.
* 3. Auditor interviews once an audit has been completed.
* 4. Percentage of audits completed within 90 days.
Correct Answer:
C
Which of the following is a weakness of observation as audit evidence?
Correct Answer:
A