Which of the following controls could an internal auditor reasonably conclude is effective by observing the physical controls of a large server room?

• A. Foam fire extinguishers are operable to protect against electrical fires.
• B. Adequate signs are in place to assist in locating safety equipment.
• C. Servers are secured individually to their racks by locks.
• D. Swipe card access is required to gain access to the server room.

A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up.
Which of the following statements is true about the auditor's actions?

• A. They are not in violation of the Standards but are in violation of the IIA Code of Ethics.
• B. They are in violation of neither the IIA Code of Ethics nor the Standards.
• C. They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.
• D. They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.

To fill a critical vacancy, an internal auditor is assigned temporarily to a nonaudit role in the purchasing department, where she worked previously before joining the internal audit activity. According to IIA guidance, which of the following statements is true regarding these circumstances?

• A. Any work performed by the auditor during her temporary assignment must conform to the internal audit charter.
• B. The CAE may conduct audits in the purchasing department during the auditor's temporary assignment.
• C. The chief audit executive (CAE) should review all work performed by the auditor during her temporary assignment to ensure no impairments.
• D. The auditor should obtain the CAE's approval as to the nature and scope of the duties she is permitted to perform during her temporary assignment.

According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?

• A. It ensures that an appropriate chain of evidence is maintained through the workpapers.
• B. It helps ensure that appropriate professional judgments and conclusions are made.
• C. It is required to demonstrate that effective engagement supervision has occurred.
• D. It increases the likelihood of obtaining the audit client's agreement with the results.

Which of the following statements describes impairment to the internal auditor's objectivity?

• A. An internal auditor reviews a purchasing agent's contract drafts prior to their execution.
• B. An internal auditor receives a promotional gift that is available to the organization's employees.
• C. An internal auditor performs an assessment of the operations for which he was recently responsible.
• D. An internal auditor reduces the scope of an audit engagement due to budget restrictions.