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Pass the IIA CIA Challenge Exam IIA-ACCA Questions and answers with ExamsMirror

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Questions # 1:

An internal auditor uses a predefined macro provided in a popular spreadsheet application to verify the present value of the organization's investments. Which of the following is the most appropriate course of action regarding the auditor's use of this functionality?

Options:

The auditor should accept the calculations generated by the function, as any further work or documentation would be inefficient.

The auditor should perform a manual recalculation of several results to validate and document the results.

The auditor should review the programming of the macro before its use to ensure that it is appropriate for the required calculations.

The auditor should tabulate the results in the spreadsheet to ensure the macro has generated the correct results for all calculations.

Questions # 2:

According to IIA guidance, which of the following statements is true when an internal auditor performs consulting services that improve an organization's operations?

Options:

The services must be aligned with those defined in the internal audit charter.

The services must not be performed by the same internal auditor who performed assurance services, in order to maintain objectivity.

The services may preclude assurance services from the consulting engagement.

The services impose no responsibility to communicate information other than to the engagement client.

Questions # 3:

An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management.

Which of the following correctly identifies the type of evidence this information represents?

Options:

Competent, corroborative evidence of future working capital requirements.

Sufficient, analytical evidence of the cash flow position at a given point of time in the future.

Competent, documentary evidence of future cash flow changes within the organization.

Sufficient, circumstantial evidence of the future solvency of the organization.

Questions # 4:

What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?

Options:

During facilitated workshops, people more openly say things to internal auditors than during private interviews.

Internal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.

Facilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.

The testimonial evidence obtained during facilitated workshops is generally considered more reliable.

Questions # 5:

According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?

Options:

Management principles.

Computerized information systems.

Internal audit standards, procedures, and techniques.

Fundamentals of accounting, economics, and finance.

Questions # 6:

Which of the following is an example of a management control technique?

Options:

A budget.

A risk assessment.

The board of directors.

The control environment.

Questions # 7:

Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?

Options:

Immediately notify management of the area under review and the other internal auditors involved in the engagement.

Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.

Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.

Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.

Questions # 8:

Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

Options:

Requesting a private meeting with senior management, without the presence of the chief audit executive.

Intervening during an audit involving ethical wrongdoing.

Discussing periodic reports of ethical breaches.

Authorizing an investigation of an unsafe product.

Questions # 9:

Which of the following statements is true regarding assurance services provided to clients outside of the organization?

Options:

Assurance services for outside clients are not covered under the internal audit charter.

Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.

The nature of assurance services for outside clients should be defined in the internal audit charter.

The nature of assurance services for outside clients is the same as for internal clients.

Questions # 10:

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

Options:

Appoint the CAE as a member of the board.

Move the CAE's functional reporting to an executive who is not on the board.

Obtain full board approval of the internal audit activity's annual audit plan.

Move the CAE's functional reporting to the audit committee.

Questions # 11:

Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?

Options:

Determine the organization's overall risk appetite.

Establish a governance committee.

Delegate authority to members of senior management.

Identify key stakeholders and their expectations.

Questions # 12:

Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.

Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?

1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.

2. Experience of the engineer in the type of work being considered.

3. Compensation or other incentives that the engineer may receive.

4. The extent of other ongoing services that the engineer may be performing for the organization.

Options:

1 and 4 only

2 and 3 only

3 and 4 only

1, 2, and 4 only

Questions # 13:

Which of the following is a requirement for an assurance engagement that may not be for a consulting engagement?

Options:

The internal audit activity has to ensure team members' objectivity is not impaired.

Auditors cannot participate in an assurance engagement of a function for which they previously performed a consulting engagement.

The scope and objective of the engagement is agreed upon based on the engagement client's needs.

The internal audit activity must ensure management actions have been implemented effectively or risk accepted.

Questions # 14:

An IT contractor applied for an internal audit position at a bank. The contractor worked for the bank's IT security manager two years ago. If the audit manager interviewed the contractor and wants to extend a job offer, which of the following actions should the chief audit executive pursue?

Options:

Allow the audit manager to hire the contractor and state that the individual is free to perform IT audits, including security.

Not allow the audit manager to hire the contractor, as it would be a conflict of interest.

Allow the audit manager to hire the contractor, but state that the individual is not allowed to work on IT security audits for one year.

Not allow the audit manager to hire the contractor and ask the individual to apply again in one year.

Questions # 15:

According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?

1. The complexity of the work required.

2. The needs and expectations of the client.

3. The potential value of the engagement compared to the effort.

4. Information regarding assumptions and procedures to be employed.