Internal Auditing and Systems Controls Paper 2


An internal auditor fails to discover an employee fraud during an assurance engagement. The non discovery is likely to suggest a violation of internal auditing standards if it was the result of a


Of the following, the primary objective of compliance testing is to determine whether


Which of the following is most likely to be regarded as a strength in internal control in a traditional external audit?


In evaluating the effectiveness and efficiency with which resources are employed, an internal auditor is responsible for


Which of the following best describes the internal audit activity’s purpose in evaluating the adequacy of risk management, control, and governance processes?


The status of the internal audit activity should be free from the effects of irresponsible policy changes by management. The most effective way to ensure that freedom is to


Independence is most likely impaired by an internal auditor’s


Which of the following activities is not presumed to impair the objectivity of an internal auditor?
I. Recommending standards of control for a new information system application.
II. Drafting procedures for running a new computer application to ensure that proper controls are installed.
III. Performing reviews of procedures for a new computer application before it is installed.


A certified internal auditor is the chief audit executive for a large city and is planning the engagement work schedule for the next year. The city has a number of different funds, some that are restricted in use by government grants and some that require compliance reports to the government. One of the programs for which the city has received a grant is job retraining and placement. The grant specifies certain conditions a participant in the program must meet to be eligible for the funding
The internal auditors randomly select participants in the job retraining program for the past year to verify that they had met all the eligibility requirements. This type of engagement is concerned with


Senior management has requested a compliance audit of the organization’s employee benefits package. Which of the following is considered the primary engagement objective by both the chief audit executive and senior management?


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