Q315. While investigating a compromised Web server, an auditor found that the Web server logs had been deleted.
The auditor should recommend that the Web server logs be:

Q316. Which of the following is the correct ratio to use in calculating the dollar value of the population if the auditor is using ratio estimation?
Number of Items
Audited Value
Carrying Amount
Sample
300
$500,000
$480,000
Population
3,000
$5,000,000

Q317. Which of the following is an effective approach for internal auditors to take to improve collaboration with audit clients during an engagement?
1.Obtain control concerns from the client before the audit begins so the internal auditor can tailor the scope accordingly.
2.Discuss the engagement plan with the client so the client can understand the reasoning behind the approach.
3.Review test criteria and procedures where the client expresses concerns about the type of tests to be conducted.
4.Provide all observations at the end of the audit to ensure the client is in agreement with the facts before publishing the report.

Q318. According to the International Professional Practices Framework, the internal audit activity’s decision to defer follow-up of recommendations and management’s corrective actions until the next scheduled engagement for the area is justified when:

Q319. Which of the following statements is true pertaining to interviewing a fraud suspect?
1. Information gathered can be subjective as well as objective to be useful.
2. The primary objective is to obtain a voluntary written confession.
3. The interviewer is likely to begin the interview with open-ended questions.
4. Video recordings always should be used to provide the highest quality evidence.

Q320. The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:

Q321. The chief audit executive (CAE) of a multinational entity with highly automated and complex operations has just completed the update of the risk-based audit plan. Interviews with management revealed the introduction of new technology and a significant increase in both the number and severity of technology- based risk exposures. According to the International Professional Practices Framework, which of the following would be the best course of action for the CAE to undertake next?

Q322. In which of the following cases is it appropriate for an audit report to not contain management’s response either within the report or as an attachment?

Q323. An airline contracted with an external service provider to perform maintenance on all aircraft ground support equipment. Management then asked the internal audit activity (IAA) to evaluate the controls in place that would permit appropriate oversight of the service provider in maintaining required maintenance standards.
According to the International Professional Practices Framework, which of the following would be the most appropriate course of action for the IAA to undertake to establish the engagement objectives?

Q324. What is the most important risk in determining the validity of construction delay claims?

Q325. Productivity statistics are provided quarterly to a company’s board of directors. An auditor
checked the ratios and other statistics in the four most recent reports. The auditor used scratch paper and copies of the board reports to verify the accuracy of computations and compared the data used in the computations with supporting documents. The auditor wrote a note describing this work for the workpapers and then discarded the scratch paper and report copies. The auditor’s note stateD.
“The ratios and other statistics in the quarterly board reports were checked for the last four quarters, and appropriate supporting documents were examined. All amounts appear to be appropriate.”
In this situation:

Q326. The internal audit activity can be involved with systems development continuously, immediately prior to implementation, after implementation, or not at all. An advantage of continuous internal audit involvement compared to the other types of involvement is that:

Q327. According to the Standards, which of the following objectives is not required to ensure the appropriate completion of an engagement?

Q328. Which of the following data collection strategies systematically tests the effects of various factors on an outcome?

Q329. Due to a recent system upgrade, an audit is planned to test the payroll process. Which of the following audit objectives would be most important to prevent fraud?

Q330. Which of the following would be a red flag that indicates the possibility of inventory fraud?
I. The controller has assumed responsibility for approving all payments to certain vendors.
II. The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.
III. Sales commissions are not consistent with the organization’s increased levels of sales.
IV. Payments to certain vendors are supported by copies of receiving memos, rather than originals.

Q331. The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
I. Financial measures.
II. Internal business process measures.
III. Client satisfaction measures.
IV.
Innovation and learning measures.

Q332. Which of the following is not an outcome of control self-assessment?