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NEW QUESTION 22
A large trucking organization wants to reduce traffic accidents by improving its system of internal controls.
Which of the following controls is correctly classified?
1. Review of speeding violations to identify repetitive locations and drivers is an example of a preventive control.
2. Defensive driver training is an example of a directive control.
3. The installation of tracking devices in delivery vehicles is an example of a corrective control.
4. Providing a vehicle driver handbook is an example of a detective control.
- A. 1 and 2.
- B. 3 and 4.
- C. 2 and 3.
- D. 1 and 4.
Answer: A
NEW QUESTION 23
Upon joining the internal audit activity, each new auditor receives a copy of the audit handbook. Which of the following handbook policies has the greatest risk of compromising audit objectivity?
- A. Internal auditors should have direct and unrestricted access to personnel and information throughout the organization and the governing board.
- B. Internal auditors should rotate to other areas of the organization for nonaudit assignments to gain an understanding of the organization's operations.
- C. Internal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related, and the remainder may be operations-related.
- D. Internal auditors should undergo annual performance appraisals conducted by the chief audit executive, who reports administratively to the chief financial officer.
Answer: B
NEW QUESTION 24
According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?
- A. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.
- B. Developing retention requirements for engagement records that are consistent with organizational guidelines.
- C. Controlling access to engagement records, including access by senior management.
- D. Rating each engagement record to assess its relevance and accessibility for the organization's board.
Answer: D
NEW QUESTION 25
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