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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Internal Audit Roles and Responsibilities | 20% | - International Professional Practices Framework (IPPF) - Standards and Code of Ethics - Role in governance and risk management - Independence and objectivity |
| Topic 2: Risk Management Assurance | 55% | - Emerging and strategic risks - Monitoring and reporting - Risk response and mitigation strategies - Assurance mapping and coordination - Risk identification and assessment |
| Topic 3: Risk Management Governance | 25% | - COSO, ISO 31000 and other standards - Roles of board, audit committee and management - Governance frameworks and structures - Risk culture and appetite |
Which of the following actions should an internal auditor take to exercise due professional care?
1. Consider the probability of significant noncompliance in each audit engagement.
2. Weigh the cost of assurance against the benefits.
3. Perform assurance procedures with sufficient care to ensure that all risks are identified.
Correct Answer: A 🗳️
A headquarters-based internal auditor has been sent to a major overseas subsidiary to conduct various engagements. Initially, the internal auditor spends time to become familiar with local customs and organization's practices while embarking on the first engagement. Which of the following competencies does the internal auditor exercise?
Correct Answer: B 🗳️
Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?
Correct Answer: D 🗳️
While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?
1. Ensure all tests use a random sampling technique.
2. Consider a judgmental approach for the sample size.
3. Assess testing errors through root cause analysis.
4. Ensure that the entire data set is tested.
Correct Answer: D 🗳️
Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?
Correct Answer: C 🗳️
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