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IIA Internal Audit Engagement Sample Questions (Q336-Q341):

NEW QUESTION # 336
Which of the following types of internal audit consulting engagements is an example of a facilitation service?
I.Conducting control self-assessment workshops.
II.
Participating on standing committees.
III.
Reviewing regulatory compliance.
IV.
Benchmarking.
Estimating savings from outsourcing processes.

A. II, III, and V only.
B. I, II, III, IV, and V.
C. I, III, and IV only.
D. I and IV only.

Answer: D

NEW QUESTION # 337
An internal auditor has completed an audit of an organization's activities and is ready to issue a report.
However, the client disagrees with the internal auditor's conclusions. The auditor should:

A. Issue the audit report and state both the auditor and client positions and the reasons for the disagreement.
B. Withhold the issuance of the audit report until agreement on the issues is obtained.
C. Perform additional work, with the client's concurrence, to resolve the areas of disagreement and delay the issuance of the report until agreement is reached.
D. Issue the audit report and omit the client's conclusion as it is not the opinion of the internal auditor.

Answer: A

NEW QUESTION # 338
The final internal audit report should be distributed to which of the following individuals?

A. Executive management only
B. Audit client management only
C. Audit client management, executive management, and any those who request a copy.
D. Audit client management, executive management, and others approved by the chief audit executive.

Answer: D

Explanation:
According to the International Standards for the Professional Practice of Internal Auditing, the final audit report should be distributed to those responsible for the functions being audited (audit client management) and to those who oversee or are accountable for the audit function (executive management). Additionally, the chief audit executive (CAE) can approve distribution to other relevant stakeholders as necessary. This ensures that all relevant parties are informed and can take appropriate action based on the audit findings. Reference:
IIA Standards - 2410: Criteria for Communicating
IIA Practice Guide - Communication with the Board

NEW QUESTION # 339
During an operational audit of a chain of pizza delivery stores, an auditor determined that cold pizzas were causing customer dissatisfaction. A review of oven calibration records for the last six months revealed that adjustments were made on over 40 percent of the ovens. Based on this, the auditor:

A. Has enough evidence to recommend the replacement of some of the ovens.
B. Has enough evidence to conclude that improperly functioning ovens are the cause.
C. Must search for another cause since approximately 60 percent of the ovens did not require adjustment.
D. Needs to conduct further inquiries and reviews to determine the impact of the oven variations on the pizza temperature.

Answer: D

Explanation:
Section: Volume A

NEW QUESTION # 340
The chief audit executive (CAE) determined that the internal audit activity lacks the resources needed to complete the internal audit plan Which of the following would be the most appropriate action tor the CAE to take?

A. Invite nonauditors to join the internal audit activity for a two-year rotational position, and assign them to join audit teams that are reviewing areas where they have no previous management responsibility
B. Outsource some of the audits to the organization s external auditor who is already familiar with the organization
C. Recruit recent college graduates and employ them as audit interns with an aim to offer permanent employment
D. Use guest auditors from within the organization, and leverage their experience by assigning them to lead engagements m areas where they previously worked

Answer: B

Explanation:
When the internal audit activity lacks the necessary resources to complete the audit plan, the most appropriate action for the CAE is to ensure that the audit plan is still executed effectively and efficiently. Outsourcing some of the audits to the organization's external auditor, who is already familiar with the organization, can help mitigate resource constraints. This approach leverages the external auditor's knowledge of the organization, ensuring continuity and quality in the audit process, while allowing the internal audit function to meet its obligations and deadlines.
IIA Standard 2030: Resource Management
IIA Practice Guide: Coordinating Internal Audit and External Audit

NEW QUESTION # 341
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