IIA IIA-CIA-Part2 : Internal Audit Engagement

Senior IT management requests the internal audit activity to perform an audit of a complex IT area. The chief audit executive (CAE) knows that the internal audit activity lacks the expertise to perform the engagement.
Which of the following is the most appropriate action for the CAE to take?

• A. Accept the audit engagement and use the engagement as an opportunity to develop the audit team ' s IT expertise while performing the audit work.
• B. Temporarily hire an experienced and knowledgeable IT analyst from the organization ' s IT department to lead the audit.
• C. Outsource the audit engagement to a reputable IT audit consulting firm.
• D. Decline the audit engagement, because the Standards prohibit internal auditors from performing engagements where they lack the necessary competencies.

According to IIA guidance, which of the following statements is true regarding the authority of the chief audit executive (CAE) to release previous audit reports to outside parties?

• A. The CAE can release prior internal audit reports with the approval of the board and senior management.
• B. The CAE can release prior information provided it is as originally published and distributed within the organization.
• C. The CAE can only release prior information outside the organization when mandated by legal or statutory requirements.
• D. The CAE can employ judgment and release prior audit results as they deem appropriate and necessary.

What would be the effect if an organization paid one of its liabilities twice during the year, in error?

• A. Assets, net income, and owners' equity would be unaffected
• B. Assets and liabilities would be understated.
• C. Assets, net income, and owners' equity would be understated, but liabilities would be overstated
• D. Assets, liabilities, and owners ' equity would be understated.

According to IIA guidance, which of the following actions might place the independence of the internal audit function in jeopardy?

• A. Participating with management in identifying and evaluating risks.
• B. Auditing the risk management process for reasonableness.
• C. Coordinating and managing the risk management process.
• D. Having no active role or involvement in the risk management process.

Which of the following statements is true regarding different competitive strategies?

• A. An organization that adopts a cost leadership strategy is known for cherishing employees who think creatively and emphasize uniqueness.
• B. An organization that adopts a differentiation strategy generally maintains a targeted strategic approach to its operations.
• C. An organization that adopts a cost leadership competitive strategy generally maintains standard operating procedures to ensure efficiency.
• D. An organization that adopts a focus strategy is known for taking the lead in technological advancement.