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IIA Practice of Internal Auditing Sample Questions (Q145-Q150):

NEW QUESTION # 145
According to the International Professional Practices Framework, the responsibility for establishing and maintaining a system to monitor the disposition of results communicated
to management falls upon:

• A. Compliance officer.
• B. Chief audit executive.
• C. Risk manager.
• D. Senior management.

Answer: B
NEW QUESTION # 146
When establishing the internal audit activity's annual plan, which of the following would be the best source of potential audit engagement topics?

• A. The organization's budget.
• B. Risk factors utilized in the organization's risk models.
• C. Operations involving cash transactions.
• D. Recent changes in management objectives.

Answer: D
NEW QUESTION # 147
Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?

• A. Observe the process.
• B. Review the trend in receivables write-offs.
• C. Check for evidence of credit approval on a sample of customer orders.
• D. Ask the credit manager about the effectiveness of the function.

Answer: B
NEW QUESTION # 148
Which of the following would be the most effective method to prevent installation of new equipment that does not meet environmental permit requirements, or to prevent modification of current processes in such a way that they no longer meet permit requirements?

• A. Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.
• B. Require that the staff of the environmental compliance department attend monthly safety meetings in different parts of the facility so that they can hear directly from the workers about any changes.
• C. Require that the environmental compliance department perform regular inspections of the manufacturing facility to identify new equipment or process modifications in progress.
• D. Rely on annual inspections by various regulatory agencies to identify equipment or processes that require a permit.

Answer: A
NEW QUESTION # 149
Which of the following is a preventive control strategy against fraud?

• A. Performing background checks on employees.
• B. Performing a surprise audit.
• C. Maintaining a whistleblower hotline.
• D. Implementing control self-assessment.

Answer: A
NEW QUESTION # 150
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