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IIA IIA-CHAL-QISA Exam Overview:
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| Topic | Details |
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| 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
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| Topic 2 | - 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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| Topic 3 | - 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.
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IIA Qualified Info Systems Auditor CIA Challenge Exam Sample Questions (Q160-Q165):
NEW QUESTION # 160
An internal auditor discovered fraud while performing an audit of an organization's procurement process. Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?
- A. Enhanced capability to prevent frauds from occurring.
- B. Improved capability of evaluating fraud risks within the organization.
- C. Greater assurance that procurement frauds will be detected in a timely manner
- D. Greater understanding of fraud through better evidence collection
Answer: D
Explanation:
Forensic auditing techniques provide a systematic approach to collecting and analyzing evidence related to fraud. The primary benefit of these techniques is the enhanced ability to gather comprehensive and detailed evidence, which leads to a greater understanding of how the fraud occurred and who was involved. This detailed evidence collection supports legal proceedings and helps in identifying control weaknesses that need to be addressed to prevent future frauds.
NEW QUESTION # 161
Which of the following is most likely the subject of a periodic report from the chief audit executive to the board?
- A. A complete, accurate, and comprehensive account of engagement observations and recommendations.
- B. The internal audit activity's purpose, authority, responsibility, and performance relative to plan.
- C. Management's assertions regarding the system of internal controls.
- D. Oversight of the coordination between the internal audit activity and independent outside auditors
Answer: B
Explanation:
Introduction:
The chief audit executive (CAE) has a crucial role in reporting to the board on various aspects of the internal audit activity (IAA).
Importance of Reporting:
Periodic reports from the CAE to the board are essential for ensuring transparency and providing oversight on the IAA's performance and alignment with organizational objectives.
NEW QUESTION # 162
Which of the following best describes the internal audit activity's responsibility within a risk and control framework?
- A. The internal audit activity constitutes the first line of defense in effective risk management.
- B. The internal audit activity verifies that management has met its responsibility for implementing effective controls.
- C. The internal audit activity provides direction regarding internal controls implementation.
- D. The internal audit activity implements the internal control framework and advises management regarding best practices
Answer: B
Explanation:
* Introduction:
* The role of the internal audit activity within a risk and control framework is to provide independent assurance that management has established and is maintaining effective internal controls.
* Responsibilities of Internal Audit:
* Internal auditors evaluate and monitor the effectiveness of internal controls, ensuring they are designed and operating effectively to mitigate risks and achieve organizational objectives.
* Options Analysis:
* Option A: Internal audit does not constitute the first line of defense; this role is typically held by
* management.
* Option B: While internal audit may provide recommendations, it does not direct the implementation of internal controls.
* Option C: Verifying that management has met its responsibility for implementing effective controls aligns with the assurance role of internal audit.
* Option D: Implementing the internal control framework is a management responsibility, not internal audit's.
* Conclusion:
* The best description of internal audit's responsibility within a risk and control framework is to verify that management has met its responsibility for implementing effective controls.
NEW QUESTION # 163
According to IIA guidance, which of the following statements is true regarding engagement planning?
- A. Internal auditors may not need to complete a preliminary risk assessment for a consulting engagement as they would when planning an assurance engagement.
- B. For both assurance and consulting engagements, planning typically occurs after the engagement objectives and scope have already been determined.
- C. The expectations and objectives of an assurance engagement are usually determined by. or in conjunction with, the engagement client
- D. For both consulting and assurance engagements, internal auditors usually form the engagement objectives prior to completing the preliminary risk assessment
Answer: C
Explanation:
The expectations and objectives of an assurance engagement are often determined in conjunction with the engagement client, aligning with the client's needs and the scope of the engagement. In consulting engagements, internal auditors provide advice and services tailored to the client's requests, which may not always follow a preliminary risk assessment process like in assurance engagements.
NEW QUESTION # 164
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?
- A. Communicate with the CEO and present the revised audit plan 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 board for approval
- D. Present the revised audit plan directly to the CEO for approval.
Answer: A
Explanation:
Role of the CAE: The Chief Audit Executive (CAE) is responsible for developing a risk-based audit plan and ensuring it is aligned with the organization's goals and emerging risks. Significant changes to the audit plan must be communicated appropriately within the organization.
NEW QUESTION # 165
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