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IIA IIA-CHAL-QISA - Questions & Answers

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Question 1
Single choice

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

Question 2
Single choice

Which of the following is a true statement regarding whistleblowing?

A.

Whistleblowing is one of several possible ethical structures an organization can undertake to encourage ethical behavior.

B.

Whistleblowing programs help employees deal with ethical questions and instill ethical values into everyday behavior

C.

Whistleblowers are current or former employees who are disgruntled and looking to retaliate.

D.

Whistleblowers should inform the organization about actual criminal circumstances, not assumed allegations.

Question 3
Single choice

Which of the following is true of matrix organizations?

A.

A unity-of-command concept requires employees to report technically, functionally, and administratively to the same manager.

B.

A combination of product and functional departments allows management to utilize personnel from various functions.

C.

Authority, responsibility, and accountability of the units involved may vary based on the projects life, or the organization's culture.

D.

it is best suited for firms with scattered locations or for multi-line, large-scale firms.

Question 4
Single choice

Internal auditors map a process by documenting the steps in the process, which provides a framework for understanding.

Which of the following is a reason to use narrative memoranda?

A.

To create a detailed risk assessment

B.

To identify individuals who perform key roles

C.

To explain a simple process.

D.

To document which outputs support other activities.

Question 5
Single choice

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.

Question 6
Single choice

Which of the following best demonstrates internal auditors performing their work with proficiency?

A.

internal auditors meet with operational management at each phase of the audit process.

B.

Internal auditors adhere to The IIA's Code of Ethics.

C.

Internal auditors work collaboratively with their engagement team.

D.

Internal auditors complete a program of continuing professional development.

Question 7
Single choice

According to IIA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?

A.

Developing policies and procedures for the internal audit activity

B.

Ensuring the internal audit activity is not found fallible during audit engagements.

C.

Undertaking all engagements that management requests of the internal audit activity.

D.

Ensuring the internal audit activity reports functionally to the board of directors

Question 8
Single choice

The internal audit activity is planning an assurance engagement for a foreign subsidiary.
According to IIA guidance, which of the following would be included in the preliminary communication to management of the area under review?

A.

The scope of the engagement, the estimated time frame, and the names of the auditors.

B.

The estimated time frame, the names of the auditors, and the resources and travel budget

C.

The names of the auditors, the resources and travel budget, and the scope of the engagement.

D.

The resources and travel budget, the scope of the engagement, and the estimated time frame.

Question 9
Single choice

Which of the following is most likely the subject of a periodic report from the chief audit executive to the board?

A.

A complete, accurate, and comprehensive account of engagement observations and recommendations.

B.

Oversight of the coordination between the internal audit activity and independent outside auditors

C.

The internal audit activity's purpose, authority, responsibility, and performance relative to plan.

D.

Management's assertions regarding the system of internal controls.

Question 10
Single choice

When using cost-volume-profit analysis, which of the following will increase operating income once the break-even point has been reached?

A.

Fixed costs per unit for each additional unit sold.

B.

Variable costs per unit for each additional unit sold.

C.

Contribution margin per unit for each additional unit sold.

D.

Gross margin per unit for each additional unit sold

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