Get 100% Authentic IIA IAA-IAP Dumps with Correct Answers [Q24-Q43]

QUESTION 24
In addition to the internal auditor, which of the following parties need to be present at an exit or closing conference?

Audit committee members

Management over areas covered by the engagement

The chief executive officer

QUESTION 25
Which of the following statements is true regarding engagement status meetings?

They are expected to enhance the relationships between the internal audit activity and management of the area under review.

They mainly involve one-way communication from the internal auditor to management of the area under review.

They should involve the chief audit executive and senior management.

QUESTION 26
Which of the following conditions would threaten an internal auditor’s objectivity?

Providing assurance services over the activity where the internal auditor was employed 10 months prior.

Using knowledge that the internal auditor gained in his previous position to update systems and controls descriptions.

Providing consulting services over the activity where the internal auditor was employed two years prior.

QUESTION 27
Which of the following is the best audit procedure to determine whether all of a bank’s loans are backed by sufficient collateral, properly aged as to current payments, and properly categorized as current or noncurrent?

Use generalized audit software to read the total loan file, age the file by last payment due, and select a statistical sample stratified by the current and aged population. Examine each loan selected for proper collateralization and aging.

Select a block sample of all loans in excess of a specified dollar limit and determine whether they are current and properly categorized. For each loan approved, verify aging and categorization.

Select a discovery sample of all loan applications to determine whether each application contains a statement of collateral.

QUESTION 28
Which of the following is most likely to be considered an internal audit assurance service?

Process design engagement.

Facilitation engagement.

Compliance engagement.

QUESTION 29
Which of the following best describes the knowledge, skills, and abilities that internal auditors should possess with regard to fraud?

Expertise in detecting and investigating fraud.

Sufficient knowledge to evaluate the risk of fraud.

Specialized skills for developing and implementing controls to prevent fraud.

QUESTION 30
An internal auditor is reporting on the organization’s asset management system. Which of the following would likely add the greatest value to the organization?

Confirmation that controls are operating efficiently.

Recommendations aimed at reducing risk exposure.

Reports that state identified deficiencies were remedied during the audit.

QUESTION 31
Which of the following would best support the overall risk assessment?

Policies and process procedures provided by the manager of the process under review.

Process narratives and process maps with descriptions of risks and controls.

Detailed organizational charts to understand roles and reporting lines in the area under review.

QUESTION 32
Which of the following would be the best indicator that the organization’s risk management processes are operating effectively?

Management openly discusses both risks and opportunities facing the organization.

Management established policies and procedures that state risk will be considered.

The organization implemented formal operational risk management processes.

QUESTION 33
Which of the following consulting engagements leverages an internal auditor’s risk and control knowledge to help the organization keep abreast of emerging risks?

Advising on control designs

Assisting with the development of policies and procedures

Facilitating organizational control self-assessments

QUESTION 34
When is it appropriate for the internal auditor to determine the engagement’s scope and objectives?

During the planning of the engagement

During the performance of the engagement

In the final engagement report

QUESTION 35
According to IIA guidance, which of the following are commonly standardized workpaper elements?

Workpapers should include a uniform cross-referencing system

Workpapers should be completed in an electronic format only

Workpapers should be supported by inclusion of original documentation

QUESTION 36
Which of the following is an example of criteria in an engagement communication?

Annual business conduct training was not performed over the past two years due to inadequate operating budgets.

The audit test was designed to evaluate compliance with the organization’s policies and procedures related to business conduct and ethics.

As a result of inadequate business conduct training, 16% of the executive team was unaware of their obligation to report potential conflicts of interest.

QUESTION 37
A senior internal auditor is planning a compliance audit of the organization’s global purchasing department.
Which of the following criteria is a relevant consideration for establishing the engagement objectives?

A list of all items acquired through the organization’s global purchasing department in the past year

Current governance laws and regulations in the countries in which the organization operates

Location of all global operations that acquire goods through the organization’s global purchasing department

QUESTION 38
Which of the following conditions involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?

The CAE regularly attends and participates in critical executive management meetings for the organization.

The CAE has direct access to records, personnel, and physical properties throughout the organization.

The CAE reports directly to the controller for the organization, and the internal audit activity resides in the office of the comptroller.

QUESTION 39
During which stage of an audit engagement would the engagement supervisor identify the tasks that were already completed and the remaining tasks to be performed?

When allocating resources.

When developing the test approach.

When documenting the work program.

QUESTION 40
During engagement planning, which of the following sources would provide the internal auditor with relevant information to obtain an understanding of the process under review?

Final report from an external financial audit of the process under review, which includes the status of management’s corrective action plans

Mission, strategic objectives, and key performance indicators of the process under review, based on documented plans, policies, procedures, and discussions with management

The internal audit activity’s annual audit plan and discussions that led to its development

QUESTION 41
Which of the following best describes an audit engagement in which the objective is to appraise the economy of an oil shale mining process and the degree to which yearly production targets are being achieved?

Due diligence

Business process improvement

Operational

QUESTION 42
Which of the following internal auditor attributes benefits the most from continuous professional development?

Integrity.

Objectivity.

Competency.

QUESTION 43
During engagement planning, which of the following would provide an internal auditor with a sufficient understanding of the process being audited?

The mission, vision, and strategic objectives of the organization.

Management’s opinion on the thoroughness of a previous internal audit of the same process.

The objectives and risk management of the process.