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IIA Essentials of Internal Auditing Sample Questions (Q545-Q550):

NEW QUESTION # 545
Which of the following professional development approaches would offer internal auditors the most opportunities to broaden their engagement experiences?

A. Appraise internal auditors' performance and competencies at least annually and issue constructive feedback.
B. Assign more experienced internal auditors to mentor the less experienced auditors.
C. Send internal auditors to external trainings in advanced internal audit topics.
D. Rotate internal auditors among different engagement assignments.

Answer: D

NEW QUESTION # 546
An internal auditor is checking the accuracy of a computer-printed inventory listing to determine whether the total dollar value of inventory is significantly overstated. Because there is no time or resources to check all items in the warehouse, a sample of inventory items must be used. If the sample size is fixed, which of the following would be the most accurate sampling approach?

A. Sample so that the probability of a given inventory item being selected is proportional to the number of units sold for that item.
B. Sample so that the probability of a given inventory item being selected is proportional to its book value.
C. Employ simple random sampling.
D. Select those items that are most easily inspected.

Answer: B

NEW QUESTION # 547
During an assurance engagement, an internal auditor reviews a tender inviting vendors to submit bids to supply financial services software to the organization. She suspects that the tender was tailored for the bidder who eventually won the contract. What should the auditor do next?

A. Review payments made for the financial services software.
B. Confront a procurement specialist with the suspicion.
C. Submit an anonymous tip to the whistleblower hotline.
D. Analyze technical terms and conditions of the tender.

Answer: D

Explanation:
When an internal auditor suspects that a tender was tailored for a specific bidder, the next appropriate action is to analyze the technical terms and conditions of the tender (Option D). This step involves a detailed examination of the tender documentation to identify any specific terms that may have been included to favor a particular bidder. Such an analysis can provide evidence of bias or manipulation. According to the IIA Standards, auditors must gather sufficient, reliable, and relevant evidence to support their findings (Standard
2310: Identifying Information).References:
* IIA Standards, Standard 2310: Identifying Information
* IIA Practice Guide: Evaluating Third-party Risk Management

NEW QUESTION # 548
Which of the following roles, if undertaken by an internal auditor, would have the greatest potential for conflict with the Standards regarding objectivity?

A. Product development team consultant.
B. Ethics advocate.
C. External audit liaison.
D. IT system designer.

Answer: D

NEW QUESTION # 549
A manufacturing organization discovers that the waste water released has failed to meet permitted limits.
Which control function will be least effective in correcting the issue?

A. Establishing a preventive maintenance program for the pretreatment system.
B. Diluting pollutants by flushing sinks and floor drains daily with large volumes of clean water.
C. Performing a chemical analysis of the water, prior to discharge, for components specified in the permit.
D. Posting signs that tell employees which substances may be disposed of via sinks and floor drains within the facility.

Answer: B

Explanation:
Section: Volume E

NEW QUESTION # 550
......

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