A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatisfied with the current amount and quality of training being provided to the staff and wishes to implement improvements. According to IIA guidance, which of the following actions would best help the CAE reach this objective?

• A. Assign one experienced manager to better coordinate staff training and development activities.
• B. Require that all staff obtain a minimum of two relevant audit certifications.
• C. Engage a consultant to benchmark the IAA's training program against its peers.
• D. Perform a gap analysis of the IAA's existing knowledge, skills and competencies.

Why are preventative controls generally preferred to detective controls?

• A. Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.
• B. Because preventive controls are more sensitive and identify more exceptions than detective controls.
• C. Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.
• D. Because preventive controls identify exceptions after-the-fact, allowing them to be used after the entire review is complete and therefore finding exceptions that detective controls may have missed.

The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?

• A. The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.
• B. The assigned internal auditor must maintain objectivity while performing the engagement.
• C. The assigned internal auditor must not assume management responsibilities while performing the engagement.
• D. The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.

An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?

• A. A combination of both statistical and nonstatistical sampling.
• B. Nonstatistical sampling only
• C. Neither approach to testing the audit theory would be cost effective.
• D. Statistical sampling only

The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk engagements on the annual audit plan to make use of his knowledge and experience and to maximize the efficient use of audit resources. Which of the following statements is most relevant regarding this practice?

• A. The CAE may self-review his work, provided he discloses this practice in the final report.
• B. The CAE's work may be reviewed by any other experienced staff member within the IAA.
• C. The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.
• D. The CAE's work should be reviewed by an individual with the appropriate background and knowledge.