1. Environment audit engagements are done to assess the organisations environmental performance against its environmental policies and objectives. An environmental audit has been planned, in which the assessment and evaluation of the production or manufacturing process of the organisation is being performed. Which type of environment audit engagement is being conducted?

a.

Compliance audit engagements

b.

EMS (environment management systems) audit engagements

c.

Product audit engagements

d.

Pollution prevention audit engagements

2. An internal auditor reports directly to the board of directors. The auditor discovered a material cash shortage. When questioned, the person responsible explained that the cash was used to cover sizable medical expenses for a child and agreed to replace the funds. Because of the corrective action, the internal auditor did not inform management. In this instance, the auditor

a.

Has both organisational independence and objectivity.

b.

Has organisational independence but not objectivity.

c.

Does not have organisational independence but has objectivity.

d.

Does not have either organisational independence or objectivity.

3. Follow-up activity may be required to ensure that corrective action has taken place for certain findings. The internal audit departments responsibility to perform follow-up activities as required should be defined in the

a.

Mission statement of the audit committee.

b.

Internal auditing department's written charter.

c.

Purpose statement within applicable audit reports.

d.

Engagement memo issued prior to each audit assignment.

4. Audit fieldwork has been defined as a systematic process of objectively gathering evidence about an entitys operations, evaluating it and determining whether those operations meet acceptable standards. Which of the following is not part of the work performed during fieldwork?

a.

Creating working papers that document the audit.

b.

Applying the audit programme to accomplish audit objectives.

c.

Expanding or amending audit procedures if circumstances warrant it.

d.

Developing a written audit programme.

5. Ensuring that internal audit teams have the right competencies with the right level of work experience and designing effective internal audit procedures can reduce the risk of which of the following the most?

a.

Business risk.

b.

Audit failures.

c.

Audit false assurance.

d.

Audit reputation risk.