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QUESTION NO: 3

IIA’s code of ethics applies to __________ that provide internal auditing services:

A. Individuals

2

B. Entities

C. Individuals and entities

D. Individuals, entities and indirect authorities

Answer: C

Explanation:

QUESTION NO: 7

Which of the following statements is NOT related to competency principle of internal auditing?

Internal auditors:

A. Shall continually improve their proficiency and effectiveness and quality of their services

B. Shall perform internal auditing services in accordance with the standards for the professional

practice of internal auditing

C. Shall engage only in those services for which they have the necessary knowledge, skills and

experience

D. Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of

activities under review

Answer: D

Explanation:

QUESTION NO: 10

Nature of internal audit activities and quality criteria against which the performance of these

services can be evaluated is best portrayed by:

A. Performance Standards

B. Attribute Standards

C. Implementation Standards

D. Evaluation Standards

Answer: A

Explanation:

QUESTION NO: 4

Internal auditors are expected to uphold the following principles:

A. Integrity, objectivity, competency

B. Integrity, objectivity, confidentiality, and competency

C. Integrity, objectivity, awareness and competency

D. Integrity, objectivity, entirety

Answer: B

Explanation:

QUESTION NO: 9

All these statements elaborate purpose of standards EXCEPT:

4

A. Foster improved organizational processes and operations

B. Establish the basis for the evaluation of internal audit performance

C. Subvert the framework for performing and promoting broad range of value-added internal audit

activities.

D. Delineate basic principles that represent the practice of internal auditing as it should be

Answer: C

Explanation:

QUESTION NO: 8

While performing consulting services internal auditors should specifically maintain:

A. Proficiency level

B. Objectivity

C. Competence

D. Confidentiality

Answer: B

Explanation:

QUESTION NO: 1

Which of the following situation would not impair audit objectivity?

A. An auditor is assigned to audit a business function that the auditor was responsible for nine

months ago

B. An individual temporarily assigned to the internal audit activity because of the individual’sexpert

knowledge in a particular business function assigned to audit an activity that theindividual was

responsible for just prior to transferring to the internal audit activity

C. An auditor is assigned to perform a post-implementation review on a system for which the

auditor participated in the design process

D. An auditor is assigned to perform a post-implementation review on a system for which the

auditor performed a procedure review and made control recommendations prior to the system’s

implementation

Answer: D

Explanation:

QUESTION NO: 2

Internal auditing:

A. Is an independent, objective assurance and consulting activity designed to add value and

improve anorganization’s operations

B. Is an independent, performance measurement and consulting activity designed to addValue

and improve an organization’s operations

C. Helps an organization accomplish objectives by bringing a systematic, disciplinedApproach to

evaluate but rarely improve the effectiveness of risk management, control and governance

D. Helps an organization accomplish objectives by bringing a targeted, disciplined approach to

evaluate but rarely improve the effectiveness of risk management, control and governance

Answer: A

Explanation:

QUESTION NO: 6

Internal auditors, engaging in activities that are illegal and discreditable to the profession of

internal auditing or the organization, violate which of the following principles:

3

A. Objectivity

B. Awareness

C. Integrity

D. Competence

Answer: C

Explanation:

QUESTION NO: 5

“Internal auditors make a balanced assessment of all the relevant circumstances and are not

unduly influenced by their own interests or by others in forming judgments.” This statement best

explains one of the following principles:

A. Competency

B. Confidentiality

C. Objectivity

D. Integrity

Answer: C

Explanation:

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