Internal Auditor Exam "Audit Business" Simulated Test Questions and Answers

1. A company plans to develop and implement a new computerized purchasing and ordering system in one of its production departments. The deputy general manager of production asked the internal auditor to join the team responsible for implementing the project. The group consists of representatives from finance, production, procurement and marketing departments. The chief auditor wants to undertake the project, so he appoints a senior auditor to join the merger. When you need it? Assist in the work. Assuming that the senior auditor has done the following work, which of the following may damage his objectivity if he is allowed to review the purchase order system as an ex post audit?

A. help define and explain control objectives.

B. test the compliance of system development standards.

C. review the adequacy of systems and programming standards.

D. draft operating procedures for the new system.

Correct answer: D.

2. Which of the following will not weaken the objectivity of internal auditors?

A. conflicts of interest.

B. Due to the lack of audit post rotation, the audited entity has a close relationship with the internal auditor.

C. internal auditors' assumptions about temporary operating responsibilities.

D. relying on external audit opinions when appropriate.

Correct answer: D.

3. The objectivity of various audit activities is different. Which of the following audit activities is the most objective?

A. compliance audit of the company's overtime policy.

B. audit the employment and dismissal activities of the personnel department.

C. performance audit of marketing department.

D. financial control audit of salary procedures.

Correct answer: a

4. This standard stipulates that internal auditors should be objective in the audit process. Suppose a chief auditor receives an annual bonus as part of his personal salary. Under what circumstances will this bonus damage the objectivity of the chief auditor?

A Bonuses are awarded by the board of directors or its remuneration management committee.

B Bonuses are based on the monetary amount received or the proposed future savings as a result of the audit.

C the scope of internal audit pays more attention to the review of internal control than the account balance.

D. the above three cities.

Correct answer: b

5. The internal auditor assigned to audit whether the product quality provided by the supplier meets the standard is the brother of the supplier's financial controller. At this point, the auditor should

Accept the task, but avoid contact with the director in field work.

Accept the appointment, but the relationship should be disclosed in the audit report.

C. notify suppliers of potential conflicts of interest.

D. notify the chief auditor of potential conflicts of interest.

Correct answer: D.

6. before The internal audit department of XYZ Company is responsible for designing and installing computerized systems for the company. A new member of the Audit Committee thinks that this activity makes him doubt the independence of the internal audit department. Which of the following activities can best dispel the audit Committee's concerns about independence?

As long as internal auditors have competent professional knowledge, internal audit institutions should continue to participate in and install other computer systems.

B in the future, internal audit institutions should not participate in and install computer systems for organizations.

C internal audit institutions should not assign auditors who design and install the national salary system to conduct salary audit.

Internal audit institutions should no longer design programs for any system of the organization.

Correct answer: b

7. Which of the following behaviors damages the independence of internal auditors?

A the internal auditor will be in charge of a branch shortly after his promotion, but he still continues to audit the branch.

B. Narrow the audit scope based on budget constraints.

C. Join a working group to provide suggestions for the control standards of the new sales system.

D. review the draft procurement agency contract before it takes effect.

Correct answer: a

8. Which of the following situations seriously affects the independence of internal audit institutions?

A internal auditors often draft amendments to the working procedures of departments criticized in audit reports.

B the chief auditor has the dual responsibility of reporting to the company's senior executive leadership and the board of directors.

C. The internal audit institution and the company's external auditors jointly plan the overall audit scope to avoid duplication of work.

D. Internal audit institutions participate in the pre-execution review of contracts signed between the company and other companies.

Correct answer: a

9. This standard requires that internal audit must have the knowledge, skills and professional training needed to complete the audit work. Which of the following correctly describes the knowledge or skills required in the standard? Internal auditors must

A. Being able to skillfully apply audit standards and procedures to specific audit work without seeking a lot of technical research and help.

B. Skillfully use the knowledge of accounting and computer information system to solve specific or potential problems.

C. Understand various technologies used to support and form audit results, and be able to study the use of appropriate audit procedures in any audit work.

D. When reviewing the financial records and reports of the organization, it will have a broad recognition of accounting principles and techniques.

Correct answer: a

10. Internal auditors are in a unique position because their audit scope often includes all areas of the organization. This also determines that every internal auditor cannot be fully competent in all audited fields. Which of the following capabilities does the standard require each internal auditor to have?

A. tax laws and laws applicable to the operation of the company.

B. proficient in accounting principles.

C. understand management principles.

D. proficient in computer systems and databases.

Correct answer: C.