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NEW QUESTION 51
What is the primary purpose of The IIA's Code of Ethics?
- A. Establish principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing
- B. Promote ethical culture within corporations and other business organizations
- C. Establish mandatory standards of competence for the practice of internal auditing
- D. Communicate specific activities appropriate to the performance of internal auditing
Answer: A
NEW QUESTION 52
The chief audit executive for an organization has just completed a risk assessment process, identified the areas with the highest risk, and assigned an audit priority to each.
Which of the following statements is true and consistent with the International Professional Practices Framework?
I. Items should be ranked in the order of quantifiable dollar exposure to the organization.
II. The audit priorities should be in order of major control deficiencies.
III. The risk assessment, though quantified, is the result of professional judgments about both exposures and probability of occurrences.
- A. III only.
- B. II and III only.
- C. I, II, and III.
- D. I only.
Answer: A
NEW QUESTION 53
According to IIA guidance,which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?
- A. Rating each engagement record to assess its relevance and accessibility for the organization's board.
- B. Controlling access to engagement records,including access by senior management.
- C. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.
- D. Developing retention requirements for engagement records that are consistent with organizational guidelines.
Answer: A
NEW QUESTION 54
If earnings on financial statements for internal use only have been manipulated in the past,an internal auditor is likely to focus on which of the following?
- A. The timing of revenue recognition and the valuation of inventories.
- B. The proper accrual of payables at the end of the interim period.
- C. Whether there have been changes in accounting principles that materially affect the
financial statements. - D. Whether accounting estimates are reasonable given past actual results.
Answer: A
NEW QUESTION 55
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. Transfer.
- C. Avoidance
- D. Acceptance
Answer: B
NEW QUESTION 56
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