QUIZ I AUDIT INTERN 2020

An internal audit activity has scheduled an engagement relating to a construction contract. One portion of this engagement will include comparing materials purchased with those specified in the engineering drawings. The IAA does not have anyone on staff with sufficient expertise to complete this procedure. The chief audit executive should

• Delete the engagement from the schedule.

• Perform the entire engagement using current staff.

• Engage an engineering consultant to perform the comparison.

• Accept the contractor’s written representations.

An internal auditor has some suspicion of, but no information about, potential misstatement of financial statements. The internal auditor has failed to exercise due professional care if (s)he

• Identified potential ways in which a misstatement could occur and ranked the items for investigation.

• Informed the engagement manager of the suspicions and asked for advice on how to proceed.

• Did not test for possible misstatement because the engagement work program had already been approved by engagement management

• Expanded the engagement work program, without the engagement client’s approval, to address the highest ranked ways in which a misstatement may have occurred.

In which of the following instances does the internal auditor violate The IIA's Code of Ethics in regard to confidentiality? I. As a witness in court, the internal auditor reveals facts discovered during a fraud investigation that implicate an organization's vice president and family members in a fraud against the organization. II. The internal auditor, while researching a supplier's quarterly reports, decides to purchase shares of the supplier's stock. III. In an interim report to the audit committee, the internal auditor describes discoveries not related to the audit's objectives that indicate a need to investigate possible criminal acts committed by someone who is friends with an organization member but otherwise has no connection to the organization. IV. In the midst of an audit interview with the internal auditor, a client staff member breaks down and begins discussing personal problems, including plans to declare personal bankruptcy. No one in the staff member's family knows about these problems and plans. The internal auditor sends an anonymous warning to the staff member's spouse.

• I and II only.

• Option 2

• II and IV only

• II,III,IV only.

A CIA, working as the director of purchasing, signs a contract to procure a large order from the supplier with the best price, quality, and performance. Shortly after signing the contract, the supplier presents the CIA with a gift of significant monetary value. Which of the following statements regarding the acceptance of the gift is correct?

• Acceptance of the gift would be prohibited only if it were noncustomary.

• Since the CIA is not acting as an internal auditor, acceptance of the gift would be governed only by the organization’s code of conduct.

• Acceptance of the gift would violate The IIA Code of Ethics and would be prohibited for a CIA.

• Since the contract was signed before the gift was offered, acceptance of the gift would not violate either The IIA Code of Ethics or the organization’s code of conduct.

An internal auditor reports directly to the board of directors. The auditor discovered a material cash shortage. When questioned, the person responsible explained that the cash was used to cover sizable medical expenses for a child and agreed to replace the funds. Because of the corrective action, the internal auditor did not inform management. In this instance, the auditor

• does not have either organizational independence or objectivity.

• has both organizational independence and objectivity.

• has organizational independence, but not objectivity.

• does not have organizational independence but has objectivity.

Mana IPPF di bawah ini yang "mandatory" bagi aktivitas audit internal. I. The Code of Ethics II. Atribute Standard. III. Performance Standard. IV. Implementation Guidance

• Hanya I dan II

• Hanya I,II, dan III

• Hanya I dan III

• Hanya II dan III

A chief audit executive (CAE) for a small internal audit department received a request from management to perform an audit of an extremely complex area in which the CAE and the department have no expertise. The nature of the audit engagement is within the scope of internal audit activities. Management has expressed a desire to have the engagement conducted in the very near future because of the high level of risk involved. Which of the following responses by the CAE would be in violation of the Standards?

• Add an outside consultant to the audit staff to assist in the performance of the audit engagement.

• Accept the audit engagement, and begin immediately since it is a high risk area.

• Discuss the timeline of the audit engagement with management to determine if sufficient time exists in which to develop appropriate expertise.

• Discuss with management the possibility of outsourcing the audit of this complex area.

The Core Principles for the Professional Practice of Internal Auditing include all of the following except:

• Demonstrates integrity.

• Is objective and free from undue influence (independent).

• Demonstrates quality and continuous improvement.

• Exhibits professionalism.

Which of the following activities undertaken by the internal auditor might be in conflict with the standard of independence?

• Product development team leader

• Risk management consultant

• Ethics advocate

• External audit liaison

Internal audit activities may involve which of the following?

• Assurance services.

• Consulting services.

• Both assurance and consulting services.

• Neither assurance nor consulting services.