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Qualified Internal Auditor
Last Update: Dec 1, 2023
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Qualified Internal Auditor Questions and Answers

Questions 1

Experience has shown that certain conditions in an organization are symptoms of possible management fraud.

Which of the following conditions would not be considered as an indicator of possible fraud?



Managers regularly assume subordinates' duties.


Managers dealing in matters outside their profit centre’s scope.


Managers not complying with corporate directives and procedures.


Managers subject to formal performance reviews on a regular basis.

Questions 2

The internal audit activity evaluates and contributes to the improvement of risk management, control, and governance systems. Which of the following statements is associated with the improvement of governance?



The internal audit activity should ascertain the extent to which operating and program goals and objectives have been established and conform to those of theorganization.


The internal audit activity should review operations and programs to ensure consistency withorganizationalvalues.


The internal audit activity should be free from interference in determining the scope of internal auditing, performing work, and communicating results.


The internal audit activity should adopt a process to control and assess the overall effectiveness of the quality program.

Questions 3

To identify shortages of specific items in an inventory of expensive goods held for retail sale, the most appropriate audit work step is to



Apply the retail method of inventory valuation.


Compare physical inventory counts to perpetual records.


Develop inventory estimates based on the gross profit percentage method.


Analyzecurrent and previous inventory turnover rates.