CIA Part 1 - The Internal Audit Activity's Role in Governance, Risk, and Control: IIA-CIA-PART1

An objective for an audit of a medical research corporation is to evaluate management's controls to ensure that timely reports are submitted to sponsors of contracted research projects. In planning the audit to achieve this objective, the auditor should begin by:

A. Reviewing policies and procedures.

B. Interviewing a group of research managers.

C. Observing report preparation in a number of laboratories.

D. Sending a questionnaire to a sample of research sponsors.

Which of the following is the primary concern of an internal auditor in a comprehensive audit of an organization?

A. Accuracy of reports on the source and use of funds.

B. Extent of achievement of the organization's mission.

C. Confirmation of compliance with policies and procedures.

D. Appropriateness of procedures related to the budgeting process.

Which of the following is a preventive control?

A. Creating an audit trail.

B. Placing controls on physical access to inventory.

C. Reconciling purchase orders with approvals.

D. Reviewing expense accounts for irregularities.