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| Topic | Details |
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| 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.
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| 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
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| 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 (Q72-Q77):
NEW QUESTION # 72
Which of the following processes does the board manage to ensure adequate governance?
- A. Establish and measure performance objectives for the internal audit activity
- B. Develop, approve, and execute the strategic plan of the organization
- C. Select board members with necessary knowledge and skills.
- D. Develop strategies to mitigate the risks to achieving the organization's objectives
Answer: B
Explanation:
The board manages several key processes to ensure adequate governance within an organization, one of which is the development, approval, and execution of the strategic plan. This process is critical because it defines the organization's direction, goals, and the actions required to achieve these goals.
Strategic Planning: The board plays a pivotal role in setting the organization's strategic direction, which includes establishing long-term goals and defining the means to achieve them.
Performance Measurement: While the board may establish and measure performance objectives for the internal audit activity, this is part of a broader governance framework.
Risk Management: The board also develops strategies to mitigate risks, ensuring that the organization can achieve its objectives effectively.
NEW QUESTION # 73
Which of the following would be considered a violation of The IIA's mandatory guidance on independence?
- A. The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit act/vity.
- B. The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer
- C. The board seeks senior managements recommendation before approving the annual salary adjustment of the CAE.
- D. The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline
Answer: C
Explanation:
* Independence Requirement:The IIA's mandatory guidance emphasizes the importance of the CAE's independence to ensure unbiased internal audit activities.
* Conflict of Interest:Seeking senior management's recommendation for the CAE's salary adjustment can create a conflict of interest and potentially compromise the CAE's independence.
* Best Practices:To maintain independence, the CAE's compensation should be determined by the board without influence from senior management.
* Standard Compliance:According to the IIA's Attribute Standard 1110 - Organizational Independence, the CAE must report to a level within the organization that allows the internal audit activity to fulfill its responsibilities.
References:
* IIA Standard 1110 - Organizational Independence .
NEW QUESTION # 74
A manager has allowed a subordinate employee to have greater control and responsibility over the tasks that he performs This is an example of which of the following?
- A. Job enlargement
- B. Job enrichment
- C. Horizontal loading of the job.
- D. Job rotation.
Answer: B
Explanation:
Job enrichment involves giving an employee more responsibility and control over their work, which increases the employee's sense of ownership and involvement in the task. This concept is about enhancing the role by adding more meaningful tasks and duties to it, rather than simply increasing the quantity of tasks (which would be job enlargement).
NEW QUESTION # 75
When using cost-volume-profit analysis, which of the following will increase operating income once the break-even point has been reached?
- A. Contribution margin per unit for each additional unit sold.
- B. Gross margin per unit for each additional unit sold
- C. Fixed costs per unit for each additional unit sold.
- D. Variable costs per unit for each additional unit sold.
Answer: A
Explanation:
Contribution Margin: Contribution margin is the amount by which the sales price of a product exceeds its variable costs. After reaching the break-even point, each additional unit sold contributes directly to operating income.
NEW QUESTION # 76
Which of the following is the next step in understanding a business process once an internal auditor has identified the process?
- A. Determine process inputs.
- B. Determine process goals
- C. Determine process activities.
- D. Determine process outputs
Answer: C
Explanation:
Once an internal auditor has identified a business process, the next step is to understand the specific activities involved in that process. This includes mapping out each step or action taken within the process to gain a detailed understanding of how it operates. Identifying process activities helps in evaluating the efficiency, effectiveness, and potential risks associated with the process
NEW QUESTION # 77
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