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Question: 1
According to The IIA’s Code of Ethics, which of the following statements is true?
A. When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.
B. When an internal auditor limits the scope of the audit engagement after learning thatmanagement is hiding relevant information, he demonstrates integrity.
C. When an internal auditor disagrees with the treatment received by workers in the organization’sforeign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.
D. When an internal auditor continues with an audit engagement, despite the audit client’s claimsthat the work performed is unnecessary and redundant he fails to demonstrate competency.
Answer: C
Question: 2
Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?
A. Managers who have been with the organization for several decades become aware that newlyhired, younger managers are being moved more quickly into senior positions.
B. The controller at a nationwidewmwanwuf.avctaulriidngqcuomepsatnioy nresce.nctolymopted to no longer require two-week mandatory vacations for accounting staff.
C. Security cameras that monitor cash handling at the register are not functioning.
D. The organization is slowly phasing out three mature products that produce the highestcommissions for the sales staff.
Answer: B
Question: 3
According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?
A. The audit committee and senior management.
B. The audit committee and the external auditors.
C. Senior management and management of the audited area.
D. Senior management and the external auditors.
Answer: A
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