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IIA IIA-CHAL-QISA Exam Syllabus Topics:

Topic	Details
Topic 1	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 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.
Topic 3	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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IIA Qualified Info Systems Auditor CIA Challenge Exam Sample Questions (Q44-Q49):

NEW QUESTION # 44
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 manufacturing organization has stable demand for its products.
D. When a manufacturer has reliable resources and suppliers.

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 # 45
When taken by a chief audit executive, which of the following actions would be most likely to prevent division management from exaggerating sales reports
1.Announcing a series of internal audit engagements focusing on compliance with corporate sales-reporting policies.
2.Asking the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting
3.Setting up a hotline for employees to report fraudulent behavior anonymously.
4.Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of. sales.

A. 1 and 2 only.
B. 2 and 3 only.
C. 3 and 4 only.
D. 2 and 4 only.

Answer: D

Explanation:
Corporate Policy Statement: Having the president and the board issue a statement stressing the importance of accurate management reporting and the negative consequences of intentional misreporting can help set a tone at the top. This reinforces the significance of ethical behavior and compliance with reporting policies across the organization.

NEW QUESTION # 46
A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annual snowfall for the coming winter. Which of the following best describes this type of risk?

A. Net
B. Accepted.
C. Residual
D. inherent.

Answer: D

Explanation:
Inherent Risk: Inherent risk refers to the exposure to risk in its natural state, without considering any controls or mitigation measures. It is the risk that exists before any action is taken to manage it.
* Example: In the scenario of a snow removal company, the significant reduction in annual snowfall represents an inherent risk as it is a natural condition that affects the company's operations.
Other Risk Types:
* Residual Risk: This is the risk that remains after controls and mitigation strategies have been applied.
* Net Risk: Similar to residual risk, it is the risk that remains after considering existing controls.
* Accepted Risk: This is the risk that the organization knowingly accepts after evaluating its impact and likelihood.
Scenario Planning: The exercise of considering the impacts of reduced snowfall helps the company understand its inherent risks and prepare for potential adverse outcomes.

NEW QUESTION # 47
A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwide practices is most likely to be acceptable to the CAE?

A. Hiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.
B. To enhance efficiency, Internal auditors should not be rotated regularly among engagements
C. Internal auditors' performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits
D. Standard training for each employee, including internal auditors, is 10 hours per year.

Answer: C

Explanation:
The statistical model indicates that daily sales have a direct relationship with the cost of ingredients used and an inverse relationship with rainy days.
* Option A: On a rainy day, if total sales are greater than expected compared to the cost of ingredients used, it may indicate discrepancies that could be a sign of employee theft. For instance, if ingredients are used but not reflected in the sales, it suggests that items might be missing (stolen).
* Option B: On a sunny day, lower-than-expected sales compared to the cost of ingredients could indicate wastage but not necessarily theft.
* Option C and D: Both scenarios where total sales and the cost of ingredients are higher or lower than expected do not specifically point to theft without additional context.

NEW QUESTION # 48
A chief audit executive is developing the annual audit plan.
Which factor should receive the HIGHEST priority?

A. Departments with the largest budgets.
B. Areas with the greatest residual risk.
C. Requests from operational managers.
D. Areas not audited during the prior year.

Answer: B

Explanation:
Risk-based planning focuses on areas presenting the highest residual risk to organizational objectives.

NEW QUESTION # 49
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