NO.223 Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor’s most appropriate next step?

NO.224 Which of the following is accomplished by the internal audit charter?

NO.225 Which of the following enhances the independence of the internal audit activity?

NO.226 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.227 After several years in the engineering department, an engineer was transferred to the internal audit department. One month later, the new auditor was assigned to an assurance engagement for the engineering department. When the auditor’s former engineering supervisor suggested a change in the sample selection method, the auditor consulted with the audit supervisor. They determined that the suggested method would not be as representative and that the original selection method should be used.
In this situation, the auditor:

NO.228 Which of the following is an advantage of email surveys compared to face-to-face interviews?

NO.229 The work papers for an audit of hazardous-materials handling and disposal at an engineering research facility provide evidence that the following procedures were performed.
Drums of hazardous waste not yet shipped off-site were inventoried. The physical count agreed with the company’s inventory records.
A sample of hazardous-waste shipments received at the disposal site was compared to bills of lading and company records. No errors were detected.
The audit staff observed engineering personnel during the handling of hazardous materials. No company policy violations were noted.
The reconciliation of waste drums to the inventory records provides evidence that:

NO.230 In order for an internal auditor to assess the opportunity for fraud to occur in an organization, which of the following does the auditor first need to understand?

NO.231 Click the Exhibit.

Internal auditors are asked to keep track of how many hours per day they spend planning the audit, conducting the engagement, and writing the audit report. The data for two days has been collected as follows:
Day 1
Day 2
Planning the audit
2 hours
3 hours
Conducting the engagement
1 hour
1 hour
Writing the audit report
2 hours
4 hours
Which of the following graphs depicts the data accurately?

NO.232 In order to be organizationally independent, the chief audit executive should report administratively to the [List A] and functionally to the [List B].
[List A]
[List B]

NO.233 Which of the following actions should an organization take to detect an emerging risk of potential fraud?

NO.234 Which of the following measurements could an auditor use in an audit of the efficiency of a motor vehicle inspection facility?

NO.235 Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

NO.236 The top three sales representatives for a company consistently include non-allowable charges on their expense reports. Line management is reluctant to deny reimbursement of the charges for fear of losing the sales representatives.
This situation has the greatest negative impact on which of the following internal control components?

NO.237 In which of the following circumstances would an internal auditor not need to search for other signs of fraud?

NO.238 A small not-for-profit organization with limited resources is unable to adequately maintain appropriate segregation of duties. Considering the organization’s resource constraints, which type of controls would best mitigate segregation of duty risks?

NO.239 According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?
I. The audit committee has requested assurance of the treasury department’s compliance with a new policy on the use of financial instruments.
II. Treasury management has not instituted any risk management policies.
III. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
IV. The external auditors have indicated some difficulties in obtaining account confirmations.

NO.240 During a review of a division’s operations, an internal auditor notes that sales and customer base are unchanged, while inventory and gross margin have increased significantly. Which of the following audit procedures would be most relevant in substantiating management’s assertion that the gross margin increase is due to increased efficiency in manufacturing operations?

NO.241 Human resources and payroll are separate departments. Which of the following combinations would provide the best segregation of duties?

NO.242 After being terminated due to downsizing,an internal auditor finds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?

NO.243 Which of the following factors is not likely to affect the level of inherent risk associated with an application system?

NO.244 To achieve conformance with the Standards, the chief audit executive must include which of the following activities in the quality assurance and improvement program (QAIP)?

NO.245 The head of human resources notified the internal audit activity that a key account manager was fired because he did not register a large number of contracts with clients As a result the organization was unaware of its duties and would suffer some financial loss Which of the following should be expected from a competent internal auditor who is analyzing this situation?

NO.246 What type of risk management strategy is being employed when an organization installs two firewalls to provide protection from unauthorized access to the network?

NO.247 Which of the following would have the least impact (either positive or negative) on an assessment of a department’s control environment?