IIA IIA-CHAL-QISA Online Practice Questions and Exam Preparation

IIA IIA-CHAL-QISA Online Questions & Answers

• Question 91:

  Which of the following best describes the internal audit activity's responsibility within a risk and control framework?

  A. The internal audit activity constitutes the first line of defense in effective risk management.
  B. The internal audit activity provides direction regarding internal controls implementation.
  C. The internal audit activity verifies that management has met its responsibility for implementing effective controls.
  D. The internal audit activity implements the internal control framework and advises management regarding best practices
  C. The internal audit activity verifies that management has met its responsibility for implementing effective controls.

• Question 92:

  Which of the following is the most appropriate reason for a chief audit executive to conduct an external assessment more frequently than five years?

  A. Significant changes in the organization's accounting policies or procedures would warrant timely analysis and feedback.
  B. More frequent external assessments can serve as an equivalent substitute for internal assessments.
  C. The parent organization's internal audit activity agreed to perform biennial reciprocal external assessments to provide greater assurance at a reduced cost.
  D. A change in senior management or internal audit leadership may change expectations and commitment to conformance
  D. A change in senior management or internal audit leadership may change expectations and commitment to conformance

• Question 93:

  The internal audit activity plans to assess the effectiveness of management's self- assessment activities regarding the risk management process. Which of the following procedures would be most appropriate to accomplish this objective?

  A. Review corporate policies and board minutes for examples of risk discussions.
  B. Conduct interviews with line and senior management on current practices.
  C. Research and review relevant industry information concerning key risks.
  D. Observe and test control and monitoring procedures and related reporting.
  D. Observe and test control and monitoring procedures and related reporting.

• Question 94:

  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.
  A. Internal auditors' performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits

• Question 95:

  A company makes a product at a cost of $26 per unit, of which $10 is fixed cost. The product is usually sold for $30 per unit; however, the company has been approached by a new customer who would like to purchase 3,500 units for $18 each Further, the company would Incur additional cost to deliver the units to this customer If the company has the excess manufacturing capacity and all other factors are constant, what is the additional cost that the company would Incur in order to makea profit of $1.50 per unit for this order?

  A. $0.50
  B. $1.50
  C. $2 50
  D. $3.50
  C. $2 50

• Question 96:

  Which of the following processes does the board manage to ensure adequate governance?

  A. Establish and measure performance objectives for the internal audit activity
  B. Select board members with necessary knowledge and skills.
  C. Develop, approve, and execute the strategic plan of the organization
  D. Develop strategies to mitigate the risks to achieving the organization's objectives
  C. Develop, approve, and execute the strategic plan of the organization

• Question 97:

  During which phase of the contracting process are contracts drafted for a proposed business activity?

  A. Initiation phase.
  B. Bidding phase.
  C. Development phase.
  D. Management phase
  C. Development phase.

• Question 98:

  While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditors relative. Which course of action should the auditor take?

  A. Proceed with the audit engagement, but do not include the relative's information.
  B. Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.
  C. Disclose in the engagement final communication that the relative Is a customer
  D. Immediately withdraw from the audit engagement
  B. Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

• Question 99:

  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 wasassigned to an assurance engagement?

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

• Question 100:

  Which of the following best describes why an internal audit activity would consider sending written preliminary observations to the audit client?

  A. Written observations allow for more interpretation.
  B. Written observations help the internal auditors express the significance.
  C. Written and verbal observations are equally effective.
  D. Written observations limit premature agreement
  C. Written and verbal observations are equally effective.