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IIA IIA-CHAL-QISA Exam Syllabus Topics:

Topic	Details
Topic 1	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 2	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
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 (Q19-Q24):

NEW QUESTION # 19
Which of the following statements is true regarding the management-by-objectives method?

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

Answer: B

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.
Comparison with Other Options:
* Rapid Changes: Option A is incorrect because MBO is not necessarily best suited for environments with rapid changes, as it relies on predefined objectives that may quickly become outdated.
* Mechanistic Organizations: Option B is incorrect because MBO is more effective in flexible, dynamic organizations rather than rigid, mechanistic ones.
* Strategic vs. Operational Goals: Option D is incorrect because MBO does not inherently distinguish between strategic and operational goals; it focuses on achieving specific measurable objectives.
References:
* MBO helps in increasing employee motivation by involving them in the goal-setting process and aligning their objectives with the organization's goals, which enhances engagement and performance.

NEW QUESTION # 20
When reviewing workpapers, engagement supervisors may ask for additional evidence or clarification via review notes. According to IIA guidance, which of the following statements is true regarding the engagement supervisors review notes?

A. The review notes may be cleared from the final documentation once the engagement supervisors concerns have been addressed
B. The chief audit executive must initial or sign the engagement supervisors review notes to provide evidence of appropriate engagement supervision.
C. Review notes provide documented proof that the engagement is supervised properly and must be retained for the quality assurance and improvement program
D. Management of the area under review must address the engagement supervisors review notes before the audit report can be finalized.

Answer: A

Explanation:
* Introduction:
* Review notes are comments or questions posed by engagement supervisors during the review of workpapers to ensure audit quality and completeness.
* IIA Guidance on Review Notes:
* According to the IIA, review notes serve as a tool for engagement supervisors to seek additional evidence or clarification.
* Options Analysis:
* Option A: This is correct as per IIA guidance, once concerns have been addressed, review notes can be cleared from the final documentation.
* Option B: Management does not typically address review notes; these are internal audit processes.
* Option C: The CAE does not need to initial or sign the review notes, as the engagement supervisor's review is sufficient.
* Option D: While review notes must be addressed, they do not necessarily need to be retained after being resolved.
* Conclusion:
* The correct procedure allows for review notes to be cleared once the engagement supervisor's concerns are addressed, streamlining the documentation process.

NEW QUESTION # 21
What is the primary reason that audit supervision includes approval of the engagement report?

A. To ensure the objectives of the area under review are met
B. To ensure senior management supports the reports conclusions
C. To ensure report findings are substantiated
D. To ensure report style and grammar are appropriate.

Answer: C

Explanation:
The primary reason for audit supervision, including the approval of the engagement report, is to ensure that the findings presented in the report are substantiated by adequate and appropriate evidence. This step is crucial to maintain the credibility and reliability of the audit process and its outcomes.
Substantiation of Findings: Ensuring that findings are substantiated helps in providing a clear and defensible basis for the conclusions and recommendations made in the report.
Audit Quality: This step ensures the quality and integrity of the audit process, confirming that the evidence collected during the audit is sufficient and appropriate to support the findings.
Credibility: By substantiating findings, the report gains credibility, which is essential for the stakeholders who rely on the audit report for decision-making.

NEW QUESTION # 22
When determining the level of staff and resources to be dedicated to an assurance engagement, which of the following would be the most relevant to the chief audit executive?

A. The overall adequacy of the internal audit activity's resources
B. The available resources with the specific skill set required
C. The number of internal auditors used for the previous review of the same area.
D. The availability of guest auditors for the engagement

Answer: B

Explanation:
When determining the level of staff and resources to dedicate to an assurance engagement, the most critical factor for the chief audit executive (CAE) is ensuring that the available resources possess the specific skill sets required for the engagement. This ensures that the internal audit team can effectively address the unique challenges and risks associated with the audit.
Skill Set Relevance: The CAE must match the skills and knowledge of the audit team to the specific requirements of the audit engagement. This includes technical expertise, industry knowledge, and any specialized skills needed for the audit.
Resource Allocation: Effective allocation involves not just the number of auditors but ensuring they have the right competencies to perform the audit tasks proficiently.
Impact on Audit Quality: Allocating resources with the appropriate skill set ensures the audit is thorough and of high quality, reducing the risk of overlooking critical issues.

NEW QUESTION # 23
An organization's health-care insurance costs have been rising approximately 10 percent per year for several years Which of the following analytical review procedures would best evaluate the reasonableness of the increase in health-care costs?

A. Review all claims and compare with appropriate procedures to ensure that overpayments have not occurred
B. Obtain a bid from another health-care administrator to provide the same administrative services as the current health-care administrator.
C. Obtain the government index of health-care costs for the comparable period of time and compare the rate of increase with that of the cost per employee incurred by the organization.
D. Develop a comparison of the costs incurred with similar costs incurred by other organizations

Answer: C

Explanation:
Analytical review procedures involve evaluating financial information by studying plausible relationships among financial and non-financial data.
Government Index Comparison: Comparing the organization's increase in health-care costs with a relevant government index provides a benchmark to assess whether the cost increases are in line with broader economic trends.
Claims Review: While reviewing all claims could help identify specific overpayments, it is more labor- intensive and less effective for evaluating overall reasonableness.
Competitive Bids: Obtaining bids from other health-care administrators might control future costs but does not evaluate the reasonableness of past cost increases.
Industry Comparison: Comparing costs with those incurred by similar organizations could be useful but might not provide a standardized measure like a government index.

NEW QUESTION # 24
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