Which of the following would most likely be found in an organization that uses a decentralized organizational structure?

• A. There is a defined code for employee behavior
• B. There are electronic monitoring techniques employed
• C. There are clear expectations set for employees.
• D. There is a higher reliance on organizational culture

A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an auditor look for as an indicator of employee theft of food from a specific store?

• A. On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.
• B. On a sunny day, total sales are less than expected when compared to the cost of ingredients used.
• C. Both total sales and cost of ingredients used are greater than expected.
• D. Both total sales and cost of ingredients used are less than expected.

An organization ' s chief audit executive is developing an integrated audit approach to provide value-added services that can help the organization meet its strategic objectives and goals. Which of the following is an advantage of using an integrated audit approach that assists the organization?

• A. It allows the internal audit function to obtain more resources to perform more engagements of departments within the organization.
• B. It allows the internal audit function to provide more subjective conclusions that would help the organization meet its goals and objectives.
• C. It allows the internal audit function to perform the appropriate engagements that minimize audit fatigue within the organization.
• D. It allows the internal audit function to focus more attention on ensuring that solutions and risks adhere to defined regulations.

According to ISO 31000, which of the following statements is correct?

• A. The framework is designed to be effective for organizations no matter how small.
• B. The internal audit activity can give objective assurance on any part of the risk management framework for which it is responsible.
• C. The board is responsible for setting the organizational attitude through tone at the top.
• D. The internal audit activity will provide assurance over operating effectiveness but not over the design of risk management activities

An engagement supervisor reviewed a staff internal auditor ' s documentation and noted that several edits should be made. The internal audit activity uses an electronic workpaper database and does not maintain paper files for its system of record. A system error prevents the engagement supervisor from adding her electronic signature to any workpaper in the database Given this situation which is the most appropriate response to provide evidence of supervisory review?

• A. Because the engagement supervisor called the help desk to correct the IT problem, he should upload the support-request ticket from the help desk to serve as evidence of the review
• B. The engagement supervisor should instruct the staff internal auditor to add a note in the workpaper on his behalf indicating that the workpaper was reviewed and feedback was provided
• C. The engagement supervisor should print sign and date each workpaper after the review is complete and scan the document into the database as evidence of review
• D. The engagement supervisor should ask another manager-level internal auditor not associated with the project to sign the workpaper on his behalf