Which of the following would constitute a violation of the IIA Code of Ethics?

• A.An internal auditor has accepted an assignment to audit the warehousing function six months from now. The auditor has no expertise in that area but has signed up for courses in warehousing that will be completed before the assignment begins.
• B.An internal auditor, who has recently joined the organization, has accepted an assignment to audit the electronics manufacturing division. The auditor previously served as senior auditor for the external audit of that division and has audited many electronics companies during the past two years.
• C.An internal auditor has no ambitions for promotion and has not engaged in training or other professional development activities during the last three years. The auditor's performance assessments indicate consistent quality of work.
• D.An internal auditor discovered an internal financial fraud during the year, and the financial statements were adjusted to properly reflect the loss associated with the fraud. The auditor discussed the fraud with the external auditor during the external auditor's review of the working papers detailing the incident.

Comment: *

Name: *

Email: *

Verification: *

According to the Standards, which of the following is least important in determining the adequacy of an annual audit plan?

• A.Sufficiency.
• B.Appropriateness.
• C.Cost effectiveness.
• D.Effective deployment.

Comment: *

Name: *

Email: *

Verification: *

An internal auditor was assigned to conduct an inventory control and stock room area engagement. During the audit, the auditor observed that there were some items that have a shelf life expiration date requirement based on a certificate of conformance received with the product. The certificates of conformance are kept on file in the inventory area office and the expiration date is verified at the time the item is taken from stock. The auditor reviewed the items in the stock room and also on the production floor for the expiration dates to see if there was any expired product. All items with a shelf life requirement were found to be within the expiration date requirement. Which of the following recommendations would be appropriate?

• A.Determine the cost of inventory for the items that have a shelf life and apply a new policy regarding inventory levels to be maintained (i.e., minimums, maximums, reorder points etc.).
• B.Add to the product label a "use by date" line, enter the expiration at the time of receipt, and perform periodic inventory checks.
• C.Take no action, because all the items were within the expiration date requirement, and no corrective action is needed.
• D.Permit production staff the access to files where the certificates of conformity are kept, so they can choose the items with the closest expiration date.

Comment: *

Name: *

Email: *

Verification: *

According to IIA guidance, which of the following is least likely to be a key financial control in an organization's accounts payable process?

• A.Compare employee addresses to vendor addresses to identify potential employee fraud.
• B.Require the approval of additions and changes to the vendor master listing, where the inherent risk of false vendors is high.
• C.Monitor customer quality complaints compared to the prior period to identify vendor issues.
• D.Monitor amounts paid each period and compare them to the budget to identify potential issues.

Comment: *

Name: *

Email: *

Verification: *

Which of the following might alert an auditor to the possibility of fraud in a division?
I. The division is not scheduled for an external audit this year.
II. Sales have increased by 10 percent.
III.
A significant portion of management's compensation is directly tied to reported net income of the division.

• A.I and II only
• B.I, II, and III
• C.I only
• D.III only

Comment: *

Name: *

Email: *

Verification: *