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IIA Essentials of Internal Auditing Sample Questions (Q579-Q584):

NEW QUESTION # 579
In selecting an instructional strategy for developing internal audit staff, a chief audit executive should first review the:

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

Answer: C Explanation:
Section: Volume B
NEW QUESTION # 580
Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?
1. Periodically report about the accounting standards followed by the organization.
2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.
3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.
4. Maintain open and effective communications with the audit committee.

• A. 2, 3, and 4 only
• B. 1 and 2 only
• C. 1, 3, and 4 only
• D. 3 and 4 only

Answer: A
NEW QUESTION # 581
Which of the following is a legitimate role for the internal audit activity in the organization's risk management process'?

• A. Setting the risk appetite of the organization
• B. Creating and implementing new risk management processes
• C. Maintaining sole responsibility for risk management within the organization
• D. Championing the establishment of a risk management framework

Answer: D
NEW QUESTION # 582
An internal auditor would most likely judge an error in an account balance to be material if the error involves:

• A. A data input function.
• B. A large percentage of net income.
• C. An unusual transaction for the company.
• D. An unverified routine transaction.

Answer: B
NEW QUESTION # 583
In developing an appropriate work program for an audit engagement, the most important factor for an audit supervisor to consider is the:

• A. Audit personnel's knowledge and experience.
• B. Potential impact of risks.
• C. Time required to complete the engagement.
• D. Availability of records and data.

Answer: B
NEW QUESTION # 584
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