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

IIA IIA-CHAL-QISA Online Questions & Answers

• Question 51:

  An internal auditor observed that sales staff are able to modify or cancel an order in the system prior to shipping She wonders whether they can also modify orders after shipping. Which of the following types of controls should she examine?

  A. Batch controls.
  B. Application controls
  C. General IT controls.
  D. Logical access controls
  B. Application controls

• Question 52:

  Following an IT systems audit, management agreed to implement a specific control in one of the IT systems. After a period, the internal auditor followed up and learned that management had not implemented the agreed management action due to the decision to move to another IT system that has built-in controls, which may address this risks highlighted by the Internal audit.

  Which of the following Is the most appropriate action to address the outstanding audit recommendation?

  A. The auditor examines the system documentation of the new system to verify that the risk has been addressed in the new system, then reports to senior management the closure of the issue.
  B. The auditor accepts managements explanation that the previously identified issue is adequately addressed by the new IT system, as management understands the concern and is most knowledgeable about the new system, and closes the outstanding issue.
  C. The auditor advises management that replacing the IT system does not dismiss the prior obligation to implement the agreed action plan, and escalates the issue to senior management and the board.
  D. The auditor requires management to provide details regarding the process for selecting the new IT system and whether other systems were evaluated, and closure of the issue would depend on the new information provided.
  A. The auditor examines the system documentation of the new system to verify that the risk has been addressed in the new system, then reports to senior management the closure of the issue.

• Question 53:

  Which of the following statements is true regarding managements use of judgement to design, implement, and conduct internal control?

  A. The use of judgment enhances managements ability to make better decisions about internal control, but cannot guarantee perfect outcomes.
  B. introducing judgment generally diminishes managements ability to make good decisions about internal control
  C. It is inappropriate for management to exercise judgement in areas such as specifying and using suitable accounting principles.
  D. It is inappropriate for management to exercise judgement in assessing whether components are present, functioning, and operating together
  A. The use of judgment enhances managements ability to make better decisions about internal control, but cannot guarantee perfect outcomes.

• Question 54:

  The board of directors of a global organization has found an increased number of reported cases of unethical practices since last year. To assist the board in gaining a better understanding of the degree of ethics awareness within the organization, which of the following actions should be undertaken?

  A. Request the internal audit activity to perform an ethics-related assurance engagement.
  B. Offer in-house ethics-related training seminars for employees to attend
  C. Reaffirm the importance of the organization's code of ethics to all employees
  D. Conduct an organization wide employee survey on ethical practices.
  D. Conduct an organization wide employee survey on ethical practices.

• Question 55:

  While reviewing the workpapers and draft report from an audit engagement, the chief audit executive (CAE) found that an Important compensating control had not been considered adequately by the audit team when it reported a major control weakness.

  Therefore, the CAE returned the documentation to the auditor in charge for correction Based on this Information, which of the following sections of the workpapers most likely would require changes?

  1.Effect of the control weakness.

  2.Cause of the control weakness

  3.Conclusion on the control weakness.

  4.Recommendation for the control weakness.

  A. 1, 2, and 3.
  B. 1.2. and 4
  C. 1,3, and 4.
  D. 2, 3, and 4.
  C. 1,3, and 4.

• Question 56:

  Which of the following statements is true regarding internal auditors and other assurance providers?

  A. Assurance providers who report to management and/or are part of management cannot provide control self-assessments services
  B. Internal auditors should always reperform and validate audit work completed by external assurance providers.
  C. Internal auditors may rely on the work of internal compliance teams to expand their coverage of the organization without increasing direct audit hours.
  D. internal auditors can rely on the work of other assurance providers only if the other assurance providers report directly to the board
  C. Internal auditors may rely on the work of internal compliance teams to expand their coverage of the organization without increasing direct audit hours.

• Question 57:

  A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an auditor look for as an Indicator of employee theft of food from a specific store?

  A. On a rainy day. total sales are greater than expected when compared to the cost of ingredients used
  B. On a sunny day. total sales are less than expected when compared to the cost of ingredients used.
  C. Both total sales and cost of ingredients used are greater than expected.
  D. Both total sales and cost of ingredients used are less than expected.
  A. On a rainy day. total sales are greater than expected when compared to the cost of ingredients used

• Question 58:

  Which of the following actions would an internal auditor perform primarily during a consulting engagement of a debt collections process?

  A. Reviewing journal entries for accuracy and completeness.
  B. Comparing the policies and procedures to regulatory collections guidance.
  C. Advising management on streamlining the recording of accounts receivable.
  D. Performing a walk-through of the debt collections process to determine whether proper segregation of duties exists
  C. Advising management on streamlining the recording of accounts receivable.

• Question 59:

  Which of the following would most likely be found in an organization that uses a decentralized organizational structure?

  A. There is a higher reliance on organizational culture
  B. There are clear expectations set for employees.
  C. There are electronic monitoring techniques employed
  D. There is a defined code for employee behavior
  A. There is a higher reliance on organizational culture

• Question 60:

  A multinational organization has multiple divisions that sell their products internally to other divisions When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

  A. Full cost
  B. Full cost plus a markup.
  C. Market price of the product.
  D. Variable cost plus a markup.
  C. Market price of the product.