Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

1. A. Requesting a private meeting with senior management, without the presence of the chief audit executive.
2. B. Intervening during an audit involving ethical wrongdoing.
3. C. Discussing periodic reports of ethical breaches.
4. D. Authorizing an investigation of an unsafe product.

Correct Answer: B

The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance, which of the following qualitative metrics would be appropriate for the CAE to use?
* 1. Average client customer satisfaction score for a given year.
* 2. Client survey comments on how to improve the IAA.
* 3. Auditor interviews once an audit has been completed.
* 4. Percentage of audits completed within 90 days.

1. A. 1 and 2.
2. B. 1 and 3.
3. C. 2 and 3.
4. D. 3 and 4.

Correct Answer: C

In which of the following functions would fraud be most likely to occur?

1. A. Maintaining custody of inventory records.
2. B. Collecting payments on accounts.
3. C. Approving changes to employee records.
4. D. Preparing customer statements.

Correct Answer: B