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IIA IIA-CHAL-QISA Exam Syllabus Topics:

Section	Objectives
Topic 1: Essentials of Internal Auditing	- Ethics and professional standards - Internal audit fundamentals and governance
Topic 2: Practice of Internal Auditing	- Audit execution and evidence collection - Audit planning and risk assessment
Topic 3: Business Knowledge for Internal Auditing	- Financial and managerial accounting basics - Information systems and IT auditing concepts

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IIA Qualified Info Systems Auditor CIA Challenge Exam Sample Questions (Q106-Q111):

NEW QUESTION # 106
At a conference an internal auditor presented a new computer-assisted audit technique developed by his organization The presentation included sample data derived from performing audit engagements for the organization. Travel costs were paid by the conference organizers and the trip was approved by the chief audit executive (CAE). However, neither management nor the CAE was aware that the internal auditor would be making a presentation based on work completed for the organization According to IIA guidance, which of the following statements is most relevant regarding the actions of the auditor?

A. The auditor did not violate the standard of objectivity because the presentation had no impact on the organization.
B. The auditor breached the conflict of interest standard by accepting payment for travel costs
C. The auditor should have obtained permission before using the material, but did not violate the IIA Code of Ethics or Standards
D. The auditor violated the principle of confidentiality by disclosing information about the organization without approval.

Answer: D

Explanation:
Understanding Confidentiality: According to the IIA Code of Ethics, internal auditors are required to respect the value and ownership of information they receive and not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
Presentation Details: In this scenario, the internal auditor presented sample data derived from audit engagements performed for the organization. Even though the travel costs were covered by the conference organizers and the trip was approved by the CAE, neither the CAE nor management was aware of the specific content of the presentation.
Violation of Confidentiality: By disclosing information related to the organization's audit engagements without prior approval from management or the CAE, the auditor breached the confidentiality principle. The auditor should have sought permission before using and presenting any material related to the organization's internal operations.

NEW QUESTION # 107
Which of the following statements is true regarding the management-by-objectives method?

A. Management by objectives helps organizations to keep employees motivated.
B. Management by objectives helps organizations to distinguish clearly strategic goals from operational goals
C. Management by objectives is most helpful in mechanistic organizations with rigidly defined tasks.
D. Management by objectives is most helpful in organizations that have rapid changes

Answer: A

Explanation:
Definition of Management by Objectives (MBO): Management by Objectives is a performance management approach where managers and employees work together to identify, plan, organize, and communicate objectives. This method involves setting clear, measurable goals with defined timelines.
Key Benefits:
Employee Motivation: MBO aligns individual goals with organizational objectives, fostering a sense of ownership and engagement among employees. By participating in goal-setting, employees are more motivated to achieve these objectives, as they see a direct link between their efforts and organizational success.
Performance Measurement: Clear objectives allow for effective performance measurement and provide a basis for performance appraisals and feedback.

NEW QUESTION # 108
A risk has a high likelihood and low impact.
Which response is MOST appropriate?

A. Automatically avoid the risk.
B. Transfer immediately.
C. Escalate to the board.
D. Evaluate whether treatment is cost-effective.

Answer: D

Explanation:
Risk response decisions should consider both impact and cost-benefit factors.

NEW QUESTION # 109
Which of the following should be included in a company's year-end inventory valuation?

A. Goods on consignment, which the company is trying to sell for its customers.
B. Company goods for sale on consignment at a consignment shop
C. Company goods that were sold during the year, free on board shipping point, that have been shipped but not yet received by the customer
D. Goods purchased by the company, free on board destination, that have not yet been received.

Answer: B

Explanation:
Year-end inventory valuation should include all goods owned by the company, regardless of their location. This includes goods for sale on consignment at a consignment shop, as these items remain the property of the company until sold. Goods sold FOB shipping point and goods purchased FOB destination that have not yet been received are not included, as ownership has transferred or not yet been acquired respectively. Goods on consignment that the company is trying to sell for others are also excluded because the company does not own them.

NEW QUESTION # 110
Organizations that adopt just-in-time purchasing systems often experience which of the following?

A. A slight increase in carrying costs.
B. A greater need for linkage with a vendors computerized order entry system.
C. An Increase in the number of suitable suppliers
D. A greater need for inspection of goods as the goods arrive

Answer: B

Explanation:
Just-in-time (JIT) purchasing systems aim to minimize inventory levels by receiving goods only as they are needed in the production process, which requires tight integration with suppliers.
Vendor Linkage: JIT systems demand a highly efficient and responsive supply chain. Linking with vendors' computerized order entry systems ensures that orders are processed quickly and accurately, supporting the JIT philosophy.
Inspection: JIT systems often rely on high-quality suppliers to minimize the need for inspection upon arrival, focusing instead on preventive measures at the supplier's end.
Carrying Costs: A JIT system typically reduces carrying costs by keeping inventory levels low.
Supplier Base: The focus is often on a few reliable suppliers rather than increasing the number of suppliers.

NEW QUESTION # 111
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