acc 590 anderson internal audit sample 560451

ACC 590 Anderson Internal Audit Sample Exam 125 points I. (42 points 3 points each) This part of the exam consists of 14 multiple choice questions. Place the letter of the response that you consider the best answer in the space indicated at the end of each question. These questions will be graded based only on the letter response. You will not receive any partial credit on this section of the test. 1. The status of the internal audit function should be free from the impact of irresponsible policy changes by management.

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ACC 590 Anderson Internal Audit Sample Exam 125 points I. (42 points 3 points each) This part of the exam consists of 14 multiple choice questions. Place the letter of the response that you consider the best answer in the space indicated at the end of each question. These questions will be graded based only on the letter response. You will not receive any partial credit on this section of the test. 1. The status of the internal audit function should be free from the impact of irresponsible policy changes by management. The most effective way to make sure of that freedom is to: a. Develop written policies and procedures to serve as standards of performance of the internal audit function. b. Have the internal audit charter approved by both management and the board of directors. c. Adopt the policy that the audit function follows the Standards for the Professional Practice of Internal Auditing. d. Require that the external auditor approve any policy change by management regarding internal audit. e. Establish an audit committee within the board of directors. Answer ____________ 2. A chief audit executive (CAE) has been requested by the audit committee to conduct an engagement at one of the company’s chemical factories as soon as possible. The engagement will include reviews of health, safety, and environmental management and processes. The CAE knows that the internal audit department does not have the necessary technical knowledge to conduct such an engagement. What should the CAE do? a. Ask the audit committee for additional resources to obtain appropriate support from a health, safety and environmental professional for the engagement. b. Suggest to the audit committee that the factory’s own health, safety and environmental staff conduct the engagement. c. Begin the engagement and incorporate the necessary technical training into next year’s training program so as to be prepared for a follow up engagement. d. Defer the engagement and tell the…

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