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IIA IIA-CHAL-QISA Exam Syllabus Topics:

Topic	Details
Topic 1	Essentials of Internal Auditing: This domain has topics such as foundations of internal auditing, independence aconcept of governance and CSR.nd objectivity, Proficiency and Due Professional Care, QA, and Managing Risks. The domain covers describing the
Topic 2	Business Knowledge for Internal Auditing: This domain covers the vital planning phases and efforts and common performance measures. It also includes ways for management to effectively lead and counsel people to increase their commitment. Also, the domain covers financial accounting and managerial accounting fundamentals and the treatment of various costs.
Topic 3	Practice of Internal Auditing: This domain covers strategies and policies related to planning, organizing, controlling of internal audit processes, and understanding administrative activities such as resourcing, recruiting, and staffing. Moreover, this domain covers goals of engagement and assessment criteria in addition to planning the engagement to ensure the identification of key risks and controls.

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IIA Qualified Info Systems Auditor CIA Challenge Exam Sample Questions (Q121-Q126):

NEW QUESTION # 121
An organization's health-care insurance costs have been rising approximately 10 percent per year for several years Which of the following analytical review procedures would best evaluate the reasonableness of the increase in health-care costs?

A. Develop a comparison of the costs incurred with similar costs incurred by other organizations
B. Review all claims and compare with appropriate procedures to ensure that overpayments have not occurred
C. Obtain a bid from another health-care administrator to provide the same administrative services as the current health-care administrator.
D. Obtain the government index of health-care costs for the comparable period of time and compare the rate of increase with that of the cost per employee incurred by the organization.

Answer: D

Explanation:
Analytical review procedures involve evaluating financial information by studying plausible relationships among financial and non-financial data.
Government Index Comparison: Comparing the organization's increase in health-care costs with a relevant government index provides a benchmark to assess whether the cost increases are in line with broader economic trends.
Claims Review: While reviewing all claims could help identify specific overpayments, it is more labor- intensive and less effective for evaluating overall reasonableness.
Competitive Bids: Obtaining bids from other health-care administrators might control future costs but does not evaluate the reasonableness of past cost increases.
Industry Comparison: Comparing costs with those incurred by similar organizations could be useful but might not provide a standardized measure like a government index.

NEW QUESTION # 122
Which action would MOST likely impair internal audit objectivity?

A. Facilitating risk workshops.
B. Approving management's risk responses.
C. Providing advice regarding control design.
D. Reviewing a process before implementation.

Answer: B

Explanation:
Approving risk responses is a management responsibility. Internal audit may advise but should not make management decisions.

NEW QUESTION # 123
Which of the following best demonstrates that the internal audit activity is using due professional care?

A. Internal auditors consider the use of technology-based audit and other data analysis techniques
B. The internal audit activity reports directly to the board on the engagements it performs.
C. Internal auditors undertake the necessary training to complete their audit work.
D. The completion of engagements is based on the assumption that fraudulent activities may exist.

Answer: A

Explanation:
Demonstrating due professional care involves using appropriate technology and data analysis techniques to enhance the audit's effectiveness and efficiency. These tools help auditors identify anomalies, trends, and potential areas of risk more accurately and timely, reflecting a higher standard of care in their audit activities.
References:
* "Auditing Standards and Guidelines," which emphasize the importance of using advanced techniques in audit processes.

NEW QUESTION # 124
Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

A. Communicating with senior management to better understand how new purchasing controls will minimize payment processing time
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. Advising new internal auditors working for the organization on how to develop strategies on planning audits for the upcoming fiscal year

Answer: C

Explanation:
Consulting Engagements: Consulting engagements are advisory in nature and are intended to add value and improve an organization's governance, risk management, and control processes.
Role of Internal Auditor: In a consulting role, an internal auditor provides advice, facilitates risk management, and helps enhance the efficiency and effectiveness of operations.
Briefing Managers: By briefing department managers on how to implement risk management processes into their daily operations, the internal auditor is providing valuable advice that can help improve the organization's risk management framework.
IIA Standards: The IIA's standards emphasize that consulting activities should aim at improving governance, risk management, and control processes without taking on management responsibilities.

NEW QUESTION # 125
When is an organic organizational structure likely to be more successful than a mechanistic organizational structure?

A. When an organization is subjected to strong political and social pressures
B. When an organization is infrequently affected by technological advances
C. When a manufacturer has reliable resources and suppliers.
D. When a manufacturing organization has stable demand for its products.

Answer: A

Explanation:
An organic organizational structure is more flexible and adaptive compared to a mechanistic structure. It is characterized by less formalization, decentralized decision-making, and a greater reliance on lateral communication. This type of structure is beneficial in environments that are dynamic and uncertain, such as when an organization faces strong political and social pressures.
The flexibility of an organic structure allows the organization to respond more effectively to external changes and pressures.

NEW QUESTION # 126
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