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NEW QUESTION 28 An internal auditor must determine which components of an organization's telecommunications may introduce the greatest risk. Which of the following tasks should the internal auditor complete first?

• A. Identify the network operating costs.
• B. Ascertain the business purpose of the network.
• C. Review the open systems interconnect network model.
• D. Map the network software and hardware products into their respective layers.

Answer: B   NEW QUESTION 29 Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?

• A. Document verification.
• B. Inquiry.
• C. Observation.
• D. Analytical review.

Answer: D   NEW QUESTION 30 Which competency is required of all staff internal auditors prior to the commencement of an IT audit?

• A. The ability to ensure that proposals for improvements to internal controls are balanced with organizational objectives and capabilities.
• B. The ability to provide an on the risk profile of the organization to the board and senior management.
• C. The ability to assess IT governance.
• D. The ability to assess the potential for fraud risk and identifying common types of fraud associated with the engagement.

Answer: C   NEW QUESTION 31 Which of the following would most likley be considered a red flag for fraud?

• A. An employee in charge of payroll disbursements has rotated these duties with several colleagues.
• B. An employee with significant personal debt is in charge of handling large wire transfers for the organization.
• C. An organization lacks a whistleblower hotline for reporting suspicious activity.
• D. A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.

Answer: B   NEW QUESTION 32 In selecting an instructional strategy for developing internal audit staff, a chief audit executive should first review the:

• A. Department's budget constraints.
• B. Content of potential training courses.
• C. Organization's objectives.
• D. Internal auditors' personal development needs.

Answer: C   NEW QUESTION 33 ......