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

The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process, which can involve multiple individuals in multiple countries.

Which of the following internal audit tools would be most effective to document the process and the key controls?

According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?

1. Identification.

2. Mitigation.

3. Remediation.

4. Reduction.

According to IIA guidance, which of the following statements is true regarding the reporting of results from an external quality assessment of the internal audit activity?

An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict.

Which of the following is the most appropriate course of action for the CAE to take?

Which of the following is most likely to function as a directive control?

An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of the following statements is true regarding the extent to which the external auditor may rely on the internal audit activity's work?

Which of the following statements accurately describes the responsibility of the internal audit activity regarding IT governance?

1. The internal audit activity does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.

2. The internal audit activity must assess whether the IT governance of the organization supports the organization's strategies and objectives.

3. The internal audit activity may assess whether the IT governance of the organization supports the organization's strategies and objectives.

4. The internal audit activity may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization's strategies and objectives.

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

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?

When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?

1. Subsequent change orders increase requirements for low-bid items.

2. Material contract requirements are different on the actual contract than on the request for bids.

3. A high percentage of employees are charged to indirect accounts.

4. Losing bidders are hired as subcontractors.

A former line supervisor from the Financial Services Department has completed six months of a two-year development opportunity with the internal audit activity (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department. Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?

Which of the following is most likely to be considered a control weakness?

Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

Internal auditors must exercise due professional care by considering which of the following?

1. Cost of assurance in relation to potential benefits.

2. Adequacy and effectiveness of governance, risk management, and control processes.

3. Management's competency level in the area being evaluated.

4. Probability of significant errors, fraud, or noncompliance.

According to IIA guidance, which of the following statements describes one of the similarities between assurance and consulting services?