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IIA IIA-ACCA - ACCA CIA Challenge Exam

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Total 604 questions

According to IIA guidance, which of the following strategies would add the least value to the achievement of the internal audit activity's (IAA's) objectives?

A.

Align organizational activities to internal audit activities and measure according to the approved IAA performance measures.

B.

Establish a periodic review of monitoring and reporting processes to help ensure relevant IAA reporting.

C.

Use the results of IAA engagement and advisory reporting to guide current and future internal audit activities.

D.

Establish a format and frequency for IAA reporting that is appropriate and aligns with the organization's governance structure.

Non-statistical sampling does not require which of the following?

A.

The sample to be representative of the population.

B.

The sample to be selected haphazardly.

C.

A smaller sample size than if selected using statistical sampling.

D.

Projecting the results to the population.

Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?

1. Acceptance of CAATs findings by entity management.

2. Computer knowledge and expertise of the auditor.

3. Time constraints.

4. Level of audit risk.

A.

1 and 4

B.

2 and 3 only

C.

1, 2, and 3

D.

2, 3, and 4

Which of the following situations is most likely to impair internal audit objectivity?

A.

An internal auditor reports both functionally and administratively to the chief financial officer (CFO).

B.

An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.

C.

According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.

D.

An internal auditor performs an audit in a department that is led by the auditor's close friend.

According to IIA guidance, which of the following should be formally documented in the internal audit charter?

A.

The internal audit activity's responsibility for imposing risk management processes.

B.

The internal audit activity's responsibility for the organization's governance framework.

C.

The nature of consulting services provided by the internal audit activity.

D.

The budgeting process for the internal audit activity.

According to The MA Global Internal Audit Competency Framework, which of the following areas of training would best assist the internal audit activity in improving its use of tools and techniques?

A.

Negotiation and conflict resolution.

B.

Project management.

C.

Financial accounting.

D.

Ethics and fraud.

When developing the organization's first risk universe, which of the following would the chief audit executive be least likely to consider?

A.

The amount of risk that an organization is willing to seek or accept.

B.

The extent and degree of interdependency for identified key risks.

C.

The boundaries established to manage the amount of risk taken.

D.

The exposure to risks following management's risk responses.

According to IIA guidance, which of the following must the internal auditor consider to meet the requirements for due professional care?

A.

The training courses necessary to enhance the internal auditor's knowledge, skills, and other competencies.

B.

The appropriateness of assurance procedures necessary to ensure all significant risks will be identified.

C.

The use of innovative technology and data analysis techniques.

D.

The extent of work needed to achieve the engagement’s objectives.

According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?

A.

Senior management.

B.

Internal audit activity.

C.

All employees.

D.

Board of directors.

A chief audit executive (CAE) is reviewing the internal audit activity's performance and is concerned that the average number of revisions to findings is steadily rising, making it increasingly difficult to trace the finding to the supporting evidence and workpapers. According to MA guidance, which of the following elements of the internal audit activity's quality assurance and improvement program would provide the CAE with the most helpful insight into the cause of this problem?

A.

The overall effectiveness of the internal audit activity's periodic self assessments.

B.

The type of audit productivity and performance statistics reported.

C.

The adequacy of the day-to-day supervision and review process.

D.

The scope and frequency of external assessments.

According to IIA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?

A.

CAE reviews and approves the annual audit plan.

B.

CAE meets privately with The CEO at least annually.

C.

CAE meets privately with The board at least annually.

D.

CAE reports to the board regarding audit staff performance evaluation and compensation.

Which of the following actions best demonstrates that an internal auditor is exercising due professional care?

A.

The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.

B.

The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.

C.

The auditor recommends improvements for all of the organization's procedures and practices.

D.

The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.

Which of the following best describes the details that must be included in the quality assurance and improvement program (QAIP) report to senior management and the board?

A.

The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.

B.

The scope and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.

C.

The scope, findings, risks, recommendations, and agreed-upon improvement actions.

D.

The number and types of people involved in the assessment, costs, and duration of the QAIP

Which of the following combinations of conditions is most likely a red flag for fraud?

A.

The practice of surprise audits and the implementation of an employee support program.

B.

Hiring an employee with a prior fraud conviction and yearly management review.

C.

Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

D.

A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.

Sometimes, internal audit staff may partner with operating managers to rank risks. Which of the following outcomes may be the most beneficial aspects of this strategy?

1. Reappraising risks levels.

2. Providing accurate information to management.

3. Marketing the internal audit activity.

4. Planning safeguards for assets in high-risk areas.

A.

1 and 2.

B.

1 and 3.

C.

2 and 3.

D.

3 and 4.