Certified Internal Auditor - Part 2, Conducting the Internal Audit Engagement: IIA-CIA-PART2

A company owns a machine that will produce 100 light switches in four hours. Due to increased demand, a second machine capable of producing 100 light switches in three hours has been added.

Approximately how many hours will it take to produce 100 light switches using both machines working together?

A. 7.0

B. 3.5

C. 1.7

D. 0.58

When constructing a staffing schedule for the internal audit activity (IAA), which of the following criteria are most important for the chief audit executive to consider for the effective use of audit resources?

1.

The competency and qualifications of the audit staff for specific assignments.

2.

The effectiveness of IAA staff performance measures.

3.

The number of training hours received by staff auditors compared to the budget.

4.

The geographical dispersion of audit staff across the organization.

A. 1 and 3

B. 1 and 4

C. 2 and 3

D. 2 and 4

Senior management requested that the internal audit activity perform a consulting project to assist in making a decision on a new software system. Which of the following would be used to determine the engagement objectives?

A. An assessment of risks to the business objectives.

B. An understanding of the engagement client's expectations.

C. The probability of significant errors, fraud, or noncompliance.

D. Criteria previously established by the board.