IIA-CHAL-QISA Online Practice Questions and Verified Answers

Question 1 Single choice

Which of the following is the primary engagement responsibility of an entry-level internal auditor?

A
Leadership
B
Documentation.
C
Analysis.
D
Reporting

Show answer and explanation

Correct answer: B

Question 2 Single choice

A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics.

Which of the following organizationwide practices is most likely to be acceptable to the CAE?

A
Internal auditors' performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits
B
Standard training for each employee, including internal auditors, is 10 hours per year.
C
To enhance efficiency, Internal auditors should not be rotated regularly among engagements
D
Hiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.

Show answer and explanation

Correct answer: A

Question 3 Single choice

Which of the following statements best demonstrates application of due professional care during an assurance engagement?

A
The engagement detected irregularities and noncompliance instances.
B
The engagement supervisor had no significant comments in the supervisory review.
C
The audit procedures were systematically planned: executed, and documented.
D
The engagement objectives were designed to assist the engagement client

Show answer and explanation

Correct answer: C

Question 4 Single choice

An organization has a mature control environment but limited internal audit resources.
Given this scenario, on which of the following should the internal auditors focus their testing?

A
Detective compensating controls
B
Preventive compensating controls.
C
Detective key controls.
D
Preventive key controls

Show answer and explanation

Correct answer: D

Question 5 Single choice

Which of the following activities demonstrates an example of the chief audit executive performing residual risk assessment?

A
Cost-benefit analysis of management not implementing a recommendation to address an observation.
B
Inquiry of corrective action to be completed within a certain period
C
Reporting the status of every observation for every engagement in a detailed manner.
D
Soliciting management's feedback after completion of the audit engagement.

Show answer and explanation

Correct answer: A

Question 6 Single choice

Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?

A
ISO 26000
B
Global Reporting Initiative.
C
Open Compliance and Ethics Group.
D
COSO's enterprise risk management framework.

Show answer and explanation

Correct answer: B

Question 7 Single choice

At a conference an internal auditor presented a new computer-assisted audit technique developed by his organization.
The presentation included sample data derived from performing audit engagements for the organization. Travel costs were paid by the conference organizers and the trip was approved by the chief audit executive (CAE).
However, neither management nor the CAE was aware that the internal auditor would be making a presentation based on work completed for the organization According to IIA guidance, which of the following statements is most relevant regarding the actions of the auditor?

A
The auditor did not violate the standard of objectivity because the presentation had no impact on the organization.
B
The auditor violated the principle of confidentiality by disclosing information about the organization without approval.
C
The auditor should have obtained permission before using the material, but did not violate the IIA Code of Ethics or Standards
D
The auditor breached the conflict of interest standard by accepting payment for travel costs

Show answer and explanation

Correct answer: B

Question 8 Single choice

When determining the level of staff and resources to be dedicated to an assurance engagement, which of the following would be the most relevant to the chief audit executive?

A
The overall adequacy of the internal audit activity's resources
B
The availability of guest auditors for the engagement
C
The number of internal auditors used for the previous review of the same area.
D
The available resources with the specific skill set required

Show answer and explanation

Correct answer: D

Question 9 Single choice

Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence.

Which of the following is the internal auditor's most appropriate next step?

A
Immediately notify management of the area under review and the other internal auditors involved in the engagement
B
Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.
C
Fully document in the workpapers the evidence that has been discovered and recommendappropriate controls to address the fraud
D
Provide the evidence that was discovered to local lav/ enforcement for possible prosecution of the suspected fraud

Show answer and explanation

Correct answer: B

Question 10 Single choice

An organization's health-care insurance costs have been rising approximately 10 percent per year for several years

Which of the following analytical review procedures would best evaluate the reasonableness of the increase in health-care costs?

A
Develop a comparison of the costs incurred with similar costs incurred by other organizations
B
Obtain the government index of health-care costs for the comparable period of time and compare the rate of increase with that of the cost per employee incurred by the organization.
C
Obtain a bid from another health-care administrator to provide the same administrative services as the
current health-care administrator.
D
Review all claims and compare with appropriate procedures to ensure that overpayments have not occurred

Show answer and explanation

Correct answer: B