An internal auditor who is carrying out an engagement to review controls related to corporate tax reporting must possess which of the following competencies?
1. Proficiency in analyzing key IT risks and controls.
2. The ability to recognize significant deviations from good business practices.
3. Knowledge of key indicators of fraud in tax reporting.
4. The ability to recognize the existence of problems related to tax accounting.
When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?
1. Management’s tolerance for specific risks.
2. The cost versus benefit of implementing a control.
3. Whether a control can mitigate multiple risks.
4. The ability to test the effectiveness of the control.
Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?
1. The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.
2. The IAA must assess whether the IT governance of the organization supports the organization’s strategies and objectives.
3. The IAA may assess whether the IT governance of the organization supports the organization’s strategies and objectives.
4. The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization’s strategies and objectives.
An organization had three large centralized divisions: one that received customer orders for service work; one that scheduled the service work at customer locations; and one that answered customer calls about service problems. These three divisions were restructured into seven regional groups, each of which performed all three functions. One advantage of this restructuring would be:
Which of the following does not provide operational assurance that a computer system is operating properly?
Which of the following stages of group development is associated with accepting team responsibilities?
Which of the following factors is considered a disadvantage of vertical integration?
According to IIA guidance, which of the following statements is true regarding analytical procedures?
Refer to the exhibit.
Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and B:
If company A has a quick ratio of 2:1, then it has an accounts receivable balance of:
How do data analysis technologies affect internal audit testing?
Which mindset promotes the most comprehensive risk management strategy?
When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:
Which of the following is an element of effective negotiating?
According to IIA guidance, which of the following is a primary component of a network security strategy?
An internal auditor is trying to assess control risk and the effectiveness of an organization's internal controls. Which of the following audit procedures would not provide assurance to the auditor on this matter?
