Certified Internal Auditor Flashcards
7 cards from real Certified Internal Auditor practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Certified Internal Auditor flashcards as text
During an audit, an internal auditor discovers that a senior manager is circumventing established controls. The auditor should FIRST:
Answer: Inform the chief audit executive and consider escalation to the audit committee
The auditor should escalate findings involving senior management misconduct to the CAE, who may then communicate with the audit committee.
The concept of 'due professional care' in internal auditing requires auditors to:
Answer: Apply the skill and diligence of a reasonably prudent auditor
Due professional care means applying the skill and diligence expected of a reasonably prudent and competent internal auditor.
Which sampling method gives every item in a population an equal chance of selection and is considered the purest form of statistical sampling?
Answer: Simple random sampling
Simple random sampling gives each item an equal probability of selection, making it the purest statistical sampling technique.
An internal audit function's organizational independence is BEST supported by:
Answer: Reporting administratively to the CFO and functionally to the audit committee
Dual reporting — administratively to senior management and functionally to the audit committee — provides optimal organizational independence.
A control that prevents errors or irregularities from occurring is BEST classified as:
Answer: Preventive control
Preventive controls are designed to stop errors or irregularities before they occur, as opposed to detecting or correcting them after the fact.
When assessing the adequacy of a sample size for a test of controls, an auditor should consider:
Answer: The tolerable deviation rate and expected population deviation rate
Sample size for tests of controls is influenced by the tolerable deviation rate and the auditor's expectation of errors in the population.
Which COSO component addresses an organization's shared values, ethical standards, and the 'tone at the top'?
Answer: Control Environment
The Control Environment is the foundation of COSO's internal control framework, encompassing organizational culture, ethics, and management's commitment to integrity.