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IIA Internal Audit Fundamentals Sample Questions (Q544-Q549):

NEW QUESTION # 544
Which of the following is not a benefit of using information technology in solving audit problems?

Answer: A


NEW QUESTION # 545
An investment advisory firm purchased professional liability insurance to offer protection from lawsuits brought by customers claiming they received poor or erroneous advice. Which of the following best describes this risk management technique?

Answer: B


NEW QUESTION # 546
An internal auditor is assigned to perform an audit of personal data protection practices in the organization.
The auditor learned about personal data protection laws in a course 15 years ago and is the only person in the internal audit function with this knowledge.
How should the auditor proceed?

Answer: D

Explanation:
The auditor's knowledge of data-protection law is significantly outdated, so current authoritative professional guidance should be obtained before relying on that knowledge in an engagement. Reviewing relevant IIA publications can help the auditor refresh professional knowledge, understand current privacy risks, and identify appropriate audit considerations. Simply beginning the audit based on training completed 15 years earlier would not demonstrate adequate proficiency. The audit client may possess valuable technical knowledge, but internal audit should not rely solely on the area under review as its source of professional audit guidance. More senior internal auditors are also not useful if, as the scenario states, no one else possesses relevant knowledge. Continuing professional development requires auditors to maintain and enhance competencies as requirements evolve. Therefore, seeking current relevant guidance from IIA publications is the best available option.


NEW QUESTION # 547
If an engagement client disputes that a specific action or process is within the scope of the internal audit activity,what would be the most appropriate way for the internal audit activity (IAA) to respond?

Answer: A


NEW QUESTION # 548
According to the International Professional Practices Framework, which of the following is the appropriate division of responsibilities for the coordination of internal and external audit efforts?
I. Oversight of Work
Coordination of Activities
Chief audit executive
Senior management
II. Board
Chief audit executive
III.
Chief financial officer
Chief audit executive
IV.
Board
Chief financial officer

Answer: C


NEW QUESTION # 549
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