An internal auditor is providing consulting services on an area he was responsible for three years ago. Part of the consulting scope covers a review of a performance measuring system that the auditor helped to develop.
What is the best course of action for the auditor to take concerning the consulting service?

• A. Refrain from providing the consulting service because he was responsible for that area and his objectivity will be impaired,
• B. Accept the consulting services only after receiving approval to do so from the board.
• C. Disclose the potential impairment to the customer before accepting the consulting engagement
• D. Accept the consulting services. The objectivity won ' t be impaired if it has been more than a year since he last worked in the area under review.

The internal audit activity completed its analysis of sample transactions to determine occurrences of double billings According to If A guidance, which of the following best demonstrates that internal auditors exercised due professional care during the review?

• A. Internal auditors documented the scope and methodology of the data testing.
• B. Internal auditors discussed with management how data is safeguarded.
• C. Internal auditors received formal performance feedback from the engagement supervisor.
• D. Internal auditors found no instances of double billing and concluded there were no significant risks in this area.

Which of the following should catch the internal auditor ' s attention as a potential red flag for fraud?

• A. One of the subsidiaries has more bank accounts than any other comparable subsidiary
• B. The arithmetic median tenure of employees working at production facilities is 15 years
• C. The accounting unit keeps detailed records and preserves supporting documentation in excess of company requirements
• D. The same external audit firm has been with the company for three years without rotation

According to IIA guidance, which of the following is the strongest indicator of deficiencies in the risk management process?

• A. Separate evaluations of the risk management process were conducted, but the results were never integrated.
• B. Many aspects of the related enterprise risk management program are informal and undocumented.
• C. Management ' s primary objective is minimizing changes to the structure and operation of the risk management process.
• D. The periodic evaluation of risk ratings is primarily dependent on subjective assessments.

Which of the following would be considered an impairment to an internal auditor ' s objectivity when performing a review of the organization ' s procurement function ' ?

• A. The internal auditor is part of a multidisciplinary team tasked to assist with a new project implementation checklist within the organization
• B. The internal auditor participates in a cross-departmental team for information and data security within the organization
• C. The internal auditor worked as a sourcing specialist before joining the internal audit activity last year
• D. The internal auditor worked on the implementation of the accounting system within the organization before joining the internal audit activity last year