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

IIA IIA-CHAL-QISA Online Questions & Answers

• Question 111:

  Which of the following best describes the risk contained in an initial public offering for a new stock?

  A. Residual risk.
  B. Net risk.
  C. Inherent risk.
  D. Underlying risk
  C. Inherent risk.

• Question 112:

  According to ISO 31000, which of the following statements is correct?

  A. The board is responsible for setting the organizational attitude through tone at the top.
  B. The internal audit activity will provide assurance over operating effectiveness but not over the design of risk management activities
  C. The internal audit activity can give objective assurance on any part of the risk management framework for which it is responsible.
  D. The framework is designed to be effective for organizations no matter how small.
  D. The framework is designed to be effective for organizations no matter how small.

• Question 113:

  A chief audit executive (CAE) identifies that the internal audit activity lacks a necessary skill to perform a management request for a consulting engagement. According to IIA guidance, which of the following Is the most appropriate action the CAE should take regarding the request?

  A. Assign the engagement to a more senior internal auditor.
  B. Decline the engagement request.
  C. Allow the internal auditors to acquire the needed skills while performing the engagement.
  D. Supervise the assigned internal auditors throughout the engagement.
  B. Decline the engagement request.

• Question 114:

  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.
  A. Cost-benefit analysis of management not implementing a recommendation to address an observation.

• Question 115:

  While conducting an engagement in the procurement department, the internal auditor noticed that the department head's travel reports showed minor travel expenses, and there were no charges for hotels, meals, or transportation However, the auditor knew that the department head frequently traveled worldwide to meet with suppliers and visit their production sites.

  Which of the following would be the most appropriate next step for the auditor?

  A. The auditor should make a note of the issue for follow-up when employee travel expenses are audited.
  B. The auditor should analyze trends and changes among the organization's suppliers over the past few years.
  C. The auditor should investigate whether there are any special arrangements regarding senior management travel.
  D. The auditor should analyze the list of destinations the department head visited to estimate typical costs
  C. The auditor should investigate whether there are any special arrangements regarding senior management travel.

• Question 116:

  When taken by a chief audit executive, which of the following actions would be most likely to prevent division management from exaggerating sales reports?

  1.Announcing a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.

  2.Asking the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting

  3.Setting up a hotline for employees to report fraudulent behavior anonymously.

  4.Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of. sales.

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

• Question 117:

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

  A. Leadership
  B. Documentation.
  C. Analysis.
  D. Reporting
  B. Documentation.

• Question 118:

  When reviewing workpapers, engagement supervisors may ask for additional evidence or clarification via review notes. According to IIA guidance, which of the following statements is true regarding the engagement supervisors review notes?

  A. The review notes may be cleared from the final documentation once the engagement supervisors concerns have been addressed
  B. Management of the area under review must address the engagement supervisors review notes before the audit report can be finalized.
  C. The chief audit executive must initial or sign the engagement supervisors review notes to provide evidence of appropriate engagement supervision.
  D. Review notes provide documented proof that the engagement is supervised properly and must be retained for the quality assurance and improvement program
  A. The review notes may be cleared from the final documentation once the engagement supervisors concerns have been addressed

• Question 119:

  The internal audit activity is responsible for which of the following actions related to an organization's internal controls?

  A. Mitigating risks affecting achievement of organizational objectives.
  B. Enabling opportunities affecting achievement of organizational objectives.
  C. Analyzing and advising regarding costs versus benefits of control activities.
  D. Attesting to fairness of financial statements
  C. Analyzing and advising regarding costs versus benefits of control activities.

• Question 120:

  Which of the following should be included in a company's year-end inventory valuation?

  A. Company goods that were sold during the year, free on board shipping point, that have been shipped but not yet received by the customer
  B. Goods purchased by the company, free on board destination, that have not yet been received.
  C. Goods on consignment, which the company is trying to sell for its customers.
  D. Company goods for sale on consignment at a consignment shop
  D. Company goods for sale on consignment at a consignment shop