Question 1

Efficiencies, waste, rework, or complaints from customers and vendors may trigger management
involvement, resulting in their request to have the matter reviewed by internal audit.

Response: False

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Question 2

_____/Reperformance. Mathematical recalculation is a form of audit evidence and it consists of

Response: Recalculation

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Question 3

Social unrest triggered by changes in government.

Response: Political risk

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Question 4

Recalculation of depreciation expense confirm the accuracy of the price tables for items sold. In cases
where the invoicing is done manually, it is even more important due to the increased possibility of
human error.

Response: False

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Question 5

_________ is the process of evaluating the degree to which the organization, program, or process is
achieving its goals and objectives.

Response: Effectiveness
Question 6

Auditors typically _____ conditions and dynamics related to the subject of the review.

Response: observe

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Question 7

Compliance issues, can be the result of external quality control initiatives that identify anomalies.

Response: False

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Question 8

We must only acquire what we need and do so at the optimal value point.

Response: Economy

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Question 9

A risk _____ is the process of identifying, measuring, and analyzing risks relevant to a program or
process.

Response: assessment

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Question 10

Fieldwork is determining if the process or program under review is designed _____ so that the related
goals and objectives are likely to be achieved.

Response: effectively

Question 11

Verify that the _____ in place are performing as designed by management.

Response: controls
Question 12

While increases in sales is always welcome news, if these figures appear dubious, internal audit may
review the related transactions to verify they are all legitimate, they have not been recorded in the
correct amount, and posted during the correct period.

Response: False

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Question 13

_____ are documents created by auditors to record the work done. They are a collection of evidentiary
material showing the planning done, the fieldwork activities performed, and the support for all
information mentioned in the audit report or other communication of results.

Response: Workpapers

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Question 14

Risk factors play an important role during planning, and in particular, during risk assessments.

Response: True

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Question 15

_____ Add the items in a row.

Response: Cross-foot

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Question 16

Floods, earthquakes, hurricanes, temperature, pandemic, and contamination

Response: Natural hazard

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Question 17
_____ consists of communicating findings, observations, and best practices noted during the review,
and developing recommendations for corrective action.

Response: Reporting

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Question 18

Primary Stakeholders of the company include

Response: Customers

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Question 19

_____. Although internal auditors are encouraged to use a conversational and participative approach
when conducting their reviews, they must also remember that they are tasked with verifying the
integrity of the information gathered and make sure their conclusions are sound.

Response: Professional Skepticism

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Question 20

_____ This involves the “reverse-trace” of a transaction from the destination (e.g., financial,
operational, or regulatory report) to its source (e.g., sales order, purchase, and time sheet)

Response: Vouch

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Question 21

The main criteria to assess this was the price of goods and services used by the organization.

Response: Economy

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Question 22

We must only acquire what we need and do so at the optimal value point.
Response: Economy

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Question 23

_____ This phase is when most of the testing is performed, and it includes interviewing, documenting,
applying testing methodologies, managing _____, and providing status updates.

Response: Fieldwork

Response: fieldwork

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Question 24

If there is a risk of fire and the potential impact will be very little damage or harm. The rate of the
impact is

Response: Negligible

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Question 25

_____ Tie information from two separate sources to verify the accuracy or expected discrepancies.

Response: Reconcile

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Question 26

The event is less likely to cause any significant harm to staff or others and could be managed.

Response: Marginal

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Question 27

Energy supply disruption is a

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Question 28

Poorly placed or installed equipment, outdated equipment, structural failure and mechanical
breakdown, and hazardous materials.

Response: Mechanical hazard

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Question 29

Knowledge drain due to employee turnover.

Response: Strategic risk

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Question 30

Failure to meet internal standard operating procedure (SOP) requirements.

Response: compliance risk

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Question 31

We must always act with integrity.

Response: Ethics

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Question 32

A risk in failure to meet combined requirements (e.g., contracts) is

Response: compliance risk

Question 33

Workpapers should be neat, easy to read, easy to review, and their appearance should be uniform.

Response: True

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Question 34

A risk in the changes in legislation or regulation due to government changes.

Response: Political risk

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Question 35

Verify that user access rights are revoked _____ upon termination.

Response: immediately

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Question 36

Documents can be internal or external, financial or nonfinancial, and an auditor may be searching for
specific items on the document.

Response: True

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Question 37

No rules can be established internally (e.g., policies and procedures) or externally (e.g., new or updated
laws and regulations), or a combination (e.g., a contract signed by the organization and one or more
external parties).

Response: False

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Question 38
Document _____. This is one of the most common procedures performed by auditors who examine
documents to verify the date and amount of transactions, agreements made between various parties,
evidence of authorizations and record of decisions made, among others.

Response: Inspection

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Question 39

When auditees know about the auditor’s observation, there is no possibility that the individuals
involved will modify their behavior so it is viewed favorably by the auditor.

Response: False

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Question 40

Recalculation of billing amount verify that employees received the correct payment based on prevailing
base and overtime pay rules.

Response: False

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Question 41

We must preserve the environment for ourselves and future generations.

Response: Ecology

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Question 42

We must establish ambitious goals, and achieve them.

Response: Effectiveness

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Question 43
 _____. After findings are reported, it is incumbent on both management and auditors to verify that the
corrective actions are in fact applied and the problems fixed as expected.

Response: Follow-Up

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Question 44

_____/tour. For an area of interest, observe and note physical conditions (e.g., fencing, temperature,
cleanliness, and demarcation).

Response: Observe

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Question 45

Verify that _____ are in place and are working effectively to process incoming customer calls promptly
and provide accurate answers to customer inquiries.

Response: procedures

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Question 46

Verify that all deposits and withdrawals were recorded in the corresponding GL account, in the correct
period, and were authorized by the appropriate _____.

Response: manager

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Question 47

Process generating excessive amounts of waste.

Response: Strategic risk

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Question 48
 In the case of internal audits, anyone being _____ may be asked to give testimonial evidence during
interviews about a variety of topics.

Response: audited

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Question 49

We must minimize the use of resources.

Response: Efficiency

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Question 50

It is a critical subject for internal auditors because an individual’s viewpoint regarding what is right and
wrong will drive most aspects of decision-making and corporate behavior, including that related to the
performance of control activities and treatment of others.

Response: Ethics

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Question 51

Compliance issues. In the case of regulators and inspector reviews that identify instances of compliance
at other organizations, the internal audit department may investigate conditions at their organization.

Response: False

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Question 52

Significant number of casualties, some requiring hospitalization and medical treatment.

Response: Critical

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Question 53
Measuring quality is essential to determine if it is being achieved and always remember that people do
what is measured, repeat what is rewarded, and stop doing what is punished.

Response: Excellence

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Question 54

The event is considered to be imminent and expected to occur, the likelihood rating is

Response: Certain or imminent

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Question 55

Defining the objectives of any engagement is essential as an initial step to put it on the right footing for
success.

Response: True

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Question 56

_____ Add the items in a column.

Response: Foot

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Question 57

Examples of Testimonial include the _____ performed while processing a loan application, how the
employee _____ incoming invoices, the _____ to record the purchase of inventory in the accounting
system, or the steps followed when notified that an employee has been _____ and _____ needs to be
granted to the computer systems.

Response: steps

Response: pays

Response: procedures
Response: hired

Response: access

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Question 58

Event may cause some very short disruptions to operations.

Response: Critical

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Question 59

After findings are reported, it is incumbent on both management and auditors not to verify that the
corrective actions are in fact applied and the problems fixed as expected.

Response: False

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Question 60

The third phase of the audit is the communication of results, often referred to as _____.

Response: reporting

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Question 61

The organization has very little exposure to the threat, the likelihood rating is

Response: Unlikely

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Question 62

Failing to maintain beneficial relationships with customers’ is a

Response: Strategic risk

Question 63

Significant damage requiring external resources to support local responders.

Response: Severe

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Question 64

_____ evidence consists of verbal or written statements or assertions given by someone as proof
regarding the matter being discussed.

Response: Testimonial

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Question 65

Inability to produce as many units as required is a

Response: capacity risk

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Question 66

The reporting phase includes scoping, budgeting, defining the population of interest, how testing will be
performed, and announcing the audit. Reporting is arguably the most important part of an audit.

Response: False

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Question 67

_____ Confirm, prove, or corroborate that a fact is true.

Response: Verify

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Question 68
_____ This involves tracing a transaction from the source (e.g., a cash receipt, file creation) to its
destination, which could be a financial, operational, or regulatory report.

Response: Trace

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Question 69

An _____ control questionnaire (ICQ) helps to evaluate internal controls in specific areas by asking key
questions.

Response: internal

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Question 70

We must do everything with high quality.

Response: Excellence

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Question 71

Recalculation of overtime hours verify that the assets were classified correctly and the appropriate
depreciation schedule applied.

Response: False

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Question 72

A _____ is a diagram of the sequence of movements or actions of people or things involved in a process
or activity.

Response: flowchart