AUI3703_2016___2018_exam_pack_Solutions

OCTOBER NOVEMBER 2018 1.1.A 1.1 The purpose of the internal audit activity’s evaluation of the effectiveness of existing risk management processes, is to determine that A management has planned and designed processes to provide reasonable assurance of achieving objectives B management directs processes to provide reasonable assurance of achieving objectives C the organisation's objectives will be achieved efficiently and economically D the organisation’s objectives will be achieved in an accurate and timely manner and with minimal use of resources 1.2. D Although the IIA Standards state that "the internal auditor should consider. .. the adequacy and effectiveness of internal control," the Standards make clear that this consideration must be based on an examination and evaluation, not just an assumption.) 1.2 An internal auditor failed to discover an employee fraud during an assurance engagement The non-discovery is most likely to suggest a violation of the International Professional Practices Framework l PPF), if it was a result of A failure to perform a detailed review of all transactions in the area B determination that any possible fraud in the area would not involve a material amount C determination that the cost of extending procedures in the area would exceed the potential benefits. D presumption that the internal controls in the area were adequate and effectiv