Winter Special Sale Limited Time 60% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: 713PS592

IIA-CHAL-QISA Qualified Info Systems Auditor CIA Challenge Exam Questions and Answers

Questions 4

During which phase of the contracting process are contracts drafted for a proposed business activity’

Options:

A.

Initiation phase.

B.

Bidding phase.

C.

Development phase.

D.

Management phase

Buy Now
Questions 5

Which of the following statements is most accurate with respect to the required elements of the quality assurance and improvement program?

Options:

A.

Internal assessments provide sufficient objectivity to provide evidence to the board that the internal audit activity understands the organization's control processes.

B.

Quality assessments focus on the internal audit activity’s structure, relationships withstakeholders, compliance with the Standards, and internal audit staff proficiency.

C.

in order to comply with the Standards, the internal audit activity must obtain an objective assessment of its processes and function at least once a year

D.

Internal auditors completing internal assessments must demonstrate certification to perform quality assessments

Buy Now
Questions 6

If the skills and competencies are not present within the internal audit activity to complete an ad-hoc assurance engagement, which of the following is an acceptable resolution?

Options:

A.

Politely decline the engagement due to a lack of qualified staff available at the time.

B.

Complete the engagement as requested, with the best of the current staff’s abilities.

C.

Consider using employees from other departments in the organization on the audit team.

D.

Change the scope of the testing to ensure that only available staff proficiencies are used

Buy Now
Questions 7

An engagement supervisor obtains facilities maintenance reports from a contractor during an audit of third-party services. Which of the following is the source of authority for the engagement supervisor to make such contact outside the organization?

Options:

A.

The policies and procedures of the internal audit activity.

B.

The provisions of the internal audit charter.

C.

The authority of the CEO.

D.

The IIA's Code of Ethics.

Buy Now
Questions 8

A corporate merger decision prompts the chief audit executive (CAE) to propose interm changes to the existing annual audit plan to account for emerging risks Which of the following Is the most appropriate action for the CAE to take regarding the changes made to the audit plan?

Options:

A.

Present the revised audit plan directly to the board for approval

B.

Communicate with the chief financial officer and present the revised audit plan to the CEO for approval.

C.

Present the revised audit plan directly to the CEO for approval.

D.

Communicate with the CEO and present the revised audit plan to the board for approval

Buy Now
Questions 9

An internal audit activity has to confirm the validity of the activities reported by a grantee that received a chantable contribution from the organization Which of the following methods would best help meet this objective?

Options:

A.

Visiting the grantee to assess whether the execution of the project was in line with the defined grant scope.

B.

Verifying that the grantee's final report is in line with what was depicted in the initial budget request.

C.

Reconciling general ledger accounts used by management of the area under review for reflecting expenses on charitable contributions

D.

Interviewing employees of the corporate affairs department, which is responsible for charitable activities

Buy Now
Questions 10

Which of the following methods is most closely associated to year over year trends?

Options:

A.

Horizontal analysts

B.

Vertical analysis.

C.

Common-size analysis.

D.

Ratio analysis.

Buy Now
Questions 11

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.

Options:

A.

1, 2, and 3.

B.

1.2. and 4

C.

1,3, and 4.

D.

2, 3, and 4.

Buy Now
Questions 12

According to IIA guidance, which of the following objectives was most likely formulated for a non-assurance engagement?

Options:

A.

The internal audit activity will assess the effects of changes in maintenance strategy on the availability of production equipment

B.

The internal audit activity will inform management on the possible risks of moving the data warehouse to a cloud server maintained by a third party.

C.

The internal audit activity will ascertain whether the data center security arrangements are compliant with agreed terms

D.

The internal audit activity will ensure equipment downtime risks have been managed in accordance with the internal policy.

Buy Now
Questions 13

According to Herzberg’s Two-Factor Theory of Motivation, which of the following factors are mentioned most often by satisfied employees9

Options:

A.

Salary and status.

B.

Responsibility and advancement

C.

Work conditions and security.

D.

Peer relationships and personal life

Buy Now
Questions 14

According to IIA guidance, which of the following steps should precede the development of audit engagement objectives?

Options:

A.

Identification of controls.

B.

Scope establishment.

C.

Risk assessment.

D.

Review of resources.

Buy Now
Questions 15

Which of the following statements best describes the difference between risk appetite and risk tolerance?

Options:

A.

Risk appetite applies to specific objectives, while risk tolerance refers to an organization's general attitude toward risk.

B.

Risk appetite refers to the degree of risk acceptance for a particular objective, while risk tolerance is one approach to risk management

C.

Risk appetite refers to an organization’s general level of acceptance, while risk tolerance is amore specific and subordinate concept

D.

There is no significant difference between the two terms

Buy Now
Questions 16

According to IIA guidance, which of the following is a limitation of a heat map?

Options:

A.

Impact cannot be represented on a heat map unless it is quantified in financial terms

B.

Impact and likelihood at times cannot be differentiated as to which is more important.

C.

A heat map cannot be used unless a risk and control matrix has been developed.

D.

Qualitative factors cannot be incorporated into a heat map

Buy Now
Questions 17

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

Options:

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

Buy Now
Questions 18

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

Options:

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

Buy Now
Questions 19

While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditors relative. Which course of action should the auditor take?

Options:

A.

Proceed with the audit engagement, but do not include the relative's information.

B.

Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

C.

Disclose in the engagement final communication that the relative Is a customer

D.

Immediately withdraw from the audit engagement

Buy Now
Questions 20

A company makes a product at a cost of $26 per unit, of which $10 is fixed cost. The product is usually sold for $30 per unit; however, the company has been approached by a new customer who would like to purchase 3,500 units for $18 each Further, the company would Incur additional cost to deliver the units to this customer If the company has the excess manufacturing capacity and all other factors are constant, what is the additional cost that the company would Incur in order to makea profit of $1.50 per unit for this order?

Options:

A.

$0.50

B.

$1.50

C.

$2 50

D.

$3.50

Buy Now
Questions 21

Which of the following statements is true regarding engagement planning?

Options:

A.

The scope of the engagement should be planned according to the internal audit activity's budgetand then aligned to the risk universe.

B.

The audit engagement objectives should be based on operational managements view of risk objectives

C.

The planning phase of the engagement should be completed and approved before the fieldwork of the engagement begins.

D.

The main purpose of the engagement work program is to determine the nature and timing of procedures required to gather audit evidence

Buy Now
Questions 22

Which of the following statements is true regarding an organization’s inventory valuation?

Options:

A.

The valuation will be incorrect if the inventory includes goods in transit shipped free on board (FOB) destination to another organization.

B.

The valuation will be correct if the inventory includes goods received on consignment from another organization.

C.

The valuation will be incorrect if the inventory includes goods in transit shipped FOB shipping point from another organization.

D.

The valuation will be correct if the inventory includes goods sent on consignment to another organization

Buy Now
Questions 23

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

Options:

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

Buy Now
Questions 24

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^

Options:

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.

Buy Now
Questions 25

A newly appointed chief audit executive (CAE) of a small organization is developing a resource management plan. Which of the following approaches would be most beneficial to help the CAE obtain details of the internal audit activity's collective knowledge, skills, and other competencies?

Options:

A.

Review or establish a documented skills assessment of the internal audit staff and gather information from post-audit surveys.

B.

Obtain from the human resources department the job descriptions and position requirements forall internal audit staff.

C.

Conduct an objective written test of the internal audit staff to assess their knowledge and skills related to core internal audit competencies.

D.

Request the internal audit staff to submit a document that summarizes their most recent performance appraisals and post audit reviews.

Buy Now
Questions 26

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

Options:

A.

A monitoring process

B.

A risk assessment process.

C.

A strategic objective-setting process.

D.

An information and communication process

Buy Now
Questions 27

An internal auditor has discovered that duplicate payments were made to one vendor Management has recouped the duplicate payments as a corrective action Which of the following describes managements action in this case?

Options:

A.

A condition-based action plan

B.

A cause-based action plan.

C.

A root cause-based action plan.

D.

An effect-based action plan.

Buy Now
Questions 28

During a payroll audit, the internal auditor discovered that several individuals who have the same position classification as the are earning a significantly higher salary. The auditor noted the names and amounts of each; and he planned to prepare a request to the chief audit executive for a salary Increase based on this Information. Which of the following IIA Code of Ethics principles was violated in this scenario?

Options:

A.

Competency.

B.

Objectivity.

C.

integrity

D.

Confidentiality

Buy Now
Questions 29

During an assurance engagement an internal auditor uses benchmarking research to support preparation of a report to stakeholders that contains significant findings about control deficiencies. Which of the following skills did the auditor demonstrate?

Options:

A.

Internal audit management

B.

Conflict negotiation.

C.

Critical thinking

D.

Persuasion and collaboration

Buy Now
Questions 30

Which of the following is true of matrix organizations?

Options:

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.

Buy Now
Questions 31

The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the Internal auditor wasassigned to an assurance engagement?

Options:

A.

The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.

B.

The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.

C.

The assigned internal auditor must not assume management responsibilities while performing the engagement.

D.

The assigned internal auditor must maintain objectivity while performing the engagement

Buy Now
Questions 32

Organizations that adopt just-in-time purchasing systems often experience which of the following?

Options:

A.

A slight increase in carrying costs.

B.

A greater need for inspection of goods as the goods arrive

C.

A greater need for linkage with a vendors computerized order entry system.

D.

An Increase in the number of suitable suppliers

Buy Now
Questions 33

What would be the effect if an organization paid one of its liabilities twice during the year, in error?

Options:

A.

Assets, liabilities, and owners' equity would be understated.

B.

Assets, net income, and owners’ equity would be unaffected

C.

Assets and liabilities would be understated.

D.

Assets, net income, and owners’ equity would be understated, but liabilities would be overstated

Buy Now
Questions 34

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

Options:

A.

Career model

B.

Center of competence model.

C.

Rotational model.

D.

Hybrid model

Buy Now
Questions 35

A manager has allowed a subordinate employee to have greater control and responsibility over the tasks that he performs This is an example of which of the following?

Options:

A.

Job enlargement

B.

Job enrichment

C.

Horizontal loading of the job.

D.

Job rotation.

Buy Now
Questions 36

Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

Options:

A.

Advising new internal auditors working for the organization on how to develop strategies on planning audits for the upcoming fiscal year

B.

Assessing whether the organization's corporate social responsibility program is meeting its yearly goals to reduce carbon emissions.

C.

Briefing the organization's department managers on how to implement risk management processes into their daily operations.

D.

Communicating with senior management to better understand how new purchasing controls will minimize payment processing time

Buy Now
Questions 37

The internal audit activity plans to assess the effectiveness of management’s self-assessment activities regarding the risk management process. Which of the following procedures would be most appropriate to accomplish this objective?

Options:

A.

Review corporate policies and board minutes for examples of risk discussions.

B.

Conduct interviews with line and senior management on current practices.

C.

Research and review relevant industry information concerning key risks.

D.

Observe and test control and monitoring procedures and related reporting.

Buy Now
Questions 38

Which of the following situations is most likely to heighten an internal auditors professional skepticism regarding potential fraud?

Options:

A.

A procurement manager does not have the expected academic credentials for his position

B.

A salesperson frequently complains about the organization's policy on sales commissions.

C.

The accounts payable supervisor has requested advances against her monthly salary on several occasions

D.

A financial accountant is absent from work frequently due to regular medical procedures

Buy Now
Questions 39

Which of the following statements is true regarding corporate social responsibility (CSR)?

Options:

A.

Many of the areas explored by CSR are normally included in an audit universe or annual audit plan

B.

Despite significant corporate resources spent on CSR reporting, investors generally do not rely on CSR information.

C.

Unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary.

D.

Typically, operating management does not have a major role to play based on the public nature of reporting

Buy Now
Questions 40

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

Options:

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.

Buy Now
Questions 41

Which of the following steps should an internal auditor complete when conducting a review of an electronic data interchange application provided by a third-party service?

1.Ensure encryption keys meet ISO standards.

2.Determine whether an independent review of the service provider's operation has been conducted.

3.Verify that the service provider's contracts include necessary clauses.

4.Verify that only public-switched data networks are used by the service provider

Options:

A.

1 and 3.

B.

1 and 4

C.

2 and 3.

D.

2 and 4.

Buy Now
Questions 42

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?

Options:

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.

Buy Now
Questions 43

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?

Options:

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.

Buy Now
Questions 44

Which of the following could increase risks to the organization’s control environment?

Options:

A.

Strong board of directors oversight.

B.

Incentive-based compensation structures

C.

Lower than average employee turnover.

D.

Implementation of a fraud hotline

Buy Now
Questions 45

A chief audit executive (CAE) following up on action plans from previously completed audits identifies that management has determined that certain action plans are no longer necessary If the CAE disagrees with managements decision, which of the following is the most appropriate next step for the CAE to take?

Options:

A.

The CAE must discuss the matter with senior management

B.

The CAE must discuss the matter with key shareholders.

C.

The CAE must discuss the matter with legal counsel.

D.

The CAE must discuss the matter with the board

Buy Now
Exam Code: IIA-CHAL-QISA
Exam Name: Qualified Info Systems Auditor CIA Challenge Exam
Last Update: Dec 4, 2024
Questions: 150

PDF + Testing Engine

$66  $164.99

Testing Engine

$50  $124.99
buy now IIA-CHAL-QISA testing engine

PDF (Q&A)

$42  $104.99
buy now IIA-CHAL-QISA pdf