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IIA Essentials of Internal Auditing Sample Questions (Q417-Q422):

NEW QUESTION # 417
A small not-for-profit organization with limited resources is unable to adequately maintain appropriate segregation of duties. Considering the organization's resource constraints, which type of controls would best mitigate segregation of duty risks?

• A. Application controls.
• B. Detective controls.
• C. Compensating controls.
• D. Preventive controls.

Answer: C

Explanation:
Section: Volume D

NEW QUESTION # 418
What information should the internal quality assessment of the internal audit activity communicate to the chief audit executive?

• A. Evaluation of the adequacy of internal audit policies and procedures.
• B. Confirmation that past audit recommendations have been implemented.
• C. Performance appraisals of the internal audit staff.
• D. Detailed objectives for internal audit engagements.

Answer: A

NEW QUESTION # 419
An investment advisory firm purchased professional liability insurance to offer protection from lawsuits brought by customers claiming they received poor or erroneous advice. Which of the following best describes this risk management technique?

• A. Mitigation.
• B. Acceptance
• C. Avoidance
• D. Transfer.

Answer: D

NEW QUESTION # 420
During an assurance engagement internal auditors interview operational management to gather and evaluate information. Which approach is most important for internal auditors to be able to listen effectively to interviewees in the given situation?

• A. Express interest by asking follow-up questions
• B. Avoid periods of silence
• C. Interrupt with questions during unclear statements
• D. Make an audio recording of the interview

Answer: A

NEW QUESTION # 421
Which of the following would be a violation of the IIA Code of Ethics?

• A. Reporting information that could be damaging to the organization, at the request of a court of law.
• B. Participating in an audit engagement for which the auditor does not have the necessary experience or training.
• C. Accepting a gift that is a commercial advertisement available to the public.
• D. Including an issue in the final audit report after management has resolved the issue.

Answer: B

Explanation:
Section: Volume A

NEW QUESTION # 422
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