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

IIA IIA-CHAL-QISA Online Questions & Answers

• Question 101:

  Which of the following types of policies best helps promote objectivity in the internal audit activity's work?

  A. Policies that are distributed to all members of the internal audit activity and require a signed acknowledgment.
  B. Policies that match internal auditors' performance with feedback from management of the area under review
  C. Policies that keep internal auditors in areas where they have vast audit expertise.
  D. Policies that provide examples of Inappropriate business relationships
  D. Policies that provide examples of Inappropriate business relationships

• Question 102:

  According to IIA guidance, which of the following statements is true regarding due professional care?

  A. Internal auditors must exercise due professional care to ensure that all significant risks will be identified.
  B. Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor.
  C. Due professional care requires the internal auditor to conduct extensive examinations and verifications to ensure fraud does not exist.
  D. Due professional care is displayed during a consulting engagement when the internal auditor focuses on potential benefits of the engagement rather than the cost
  B. Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor.

• Question 103:

  According to IIA guidance, which of the following is true regarding typical fraud schemes?

  1.A diversion occurs when an employee has an undisclosed personal economic interest in a transaction that adversely affects the organization

  2.Tax evasion is intentional reporting of false or misleading information on a tax return by an organization to reduce taxes owed.

  3.Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization's records

  4.Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services

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

• Question 104:

  An internal auditor is asked to determine why the production line for a large manufacturing organization has been experiencing shutdowns due to unavailable parts The auditor learns that production data used for generating automatic purchases via electronic interchange is collected on personal computers connected by a local area network (LAN) Purchases are made from authorized vendors based on both the production plans for the next month and an authorized materials requirements plan (MRP) that identifies the parts needed per unit of production. The auditor suspects the shutdowns are occurring because purchasing requirements have not been updated for changes in production techniques.

  Which of the following audit procedures should be used to test the auditor's theory?

  A. Compare purchase orders generated from test data Input into the LAN with purchase orders generated from production data for the most recent period.
  B. Develop a report of excess inventory and compare the inventory with current production volume.
  C. Compare the parts needed based on current production estimates and the MRP for the revised production techniques with the purchase orders generated from the system for the same period
  D. Select a sample of production estimates and MRPs for several periods and trace them into the system to determine that input is accurate
  C. Compare the parts needed based on current production estimates and the MRP for the revised production techniques with the purchase orders generated from the system for the same period

• Question 105:

  With regard to project management, which of the following statements about project crashing is true?

  A. It leads to an increase in risk and often results in rework.
  B. It is an optimization technique where activities are performed in parallel rather than sequentially
  C. It involves a revaluation of project requirements and/or scope.
  D. It is a compression technique in which resources are added to the project
  D. It is a compression technique in which resources are added to the project

• Question 106:

  Which of the following must be in existence as a precondition to developing an effective system of internal controls?

  A. A monitoring process
  B. A risk assessment process.
  C. A strategic objective-setting process.
  D. An information and communication process
  B. A risk assessment process.

• Question 107:

  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
  C. The audit procedures were systematically planned: executed, and documented.

• Question 108:

  Which of the following internal audit activity staffing models has the disadvantage that auditors arealways new and in training?

  A. Career model
  B. Center of competence model.
  C. Rotational model.
  D. Hybrid model
  C. Rotational model.

• Question 109:

  Which of the following is most likely to impair the organizational independence of the internal audit activity?

  A. The chief audit executive (CAE) reports administratively to the chief financial officer
  B. The CAE oversees the effectiveness of the organization's risk management function.
  C. The CAE reports functionally to the CEO.
  D. The CAE managed the finance department for the past five years.
  D. The CAE managed the finance department for the past five years.

• Question 110:

  A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annual snowfall for the coming winter. Which of the following best describes this type of risk?

  A. Residual
  B. Net
  C. inherent.
  D. Accepted.
  C. inherent.