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IIA Qualified Info Systems Auditor CIA Challenge Exam Sample Questions (Q53-Q58):
NEW QUESTION # 53
An internal auditor believes that the internal audit activity's independence is impaired Which of the following actions should the internal auditor take first?
- A. Decide on the extent of impact of the impairment
- B. Discuss the impairment with the audit manager.
- C. Ascertain the best approach to disclose the impairment.
- D. Report the impairment to senior management
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 # 54
Which of the following is the primary engagement responsibility of an entry-level internal auditor?
- A. Analysis.
- B. Leadership
- C. Reporting
- D. Documentation.
Answer: D
Explanation:
Primary Responsibilities: For entry-level internal auditors, the primary responsibilities focus on learning and supporting tasks. Documentation is a key responsibility as it involves recording the findings and work performed during an audit engagement. This helps in building a foundation for understanding audit processes and methodologies.
NEW QUESTION # 55
The audit plan requires a review of the testing procedures used in pre-production of a large information system prior to its live launch. If the chief audit executive (CAE) is uncertain that the current audit team has all the required knowledge to conduct the engagement, which of the following would be the most appropriate course of action for the CAE to take to preserve independence?
- A. Request audit resources through the external auditor.
- B. Ask for a knowledgeable resource from the IT department
- C. Contract with the software vendor to provide an appropriate resource
- D. Make use of an external service provider.
Answer: D
Explanation:
If the chief audit executive (CAE) is uncertain that the current audit team has all the required knowledge to conduct the engagement, the most appropriate course of action is to use an external service provider. This helps preserve the independence and objectivity of the internal audit function.
Expertise: External service providers bring specialized knowledge and expertise that may not be available within the internal team.
Independence: Utilizing an external provider ensures that the audit maintains its independence and objectivity, avoiding any potential conflicts of interest.
Quality: Ensures that the audit engagement is conducted with the highest standards, leveraging the external provider's experience and skills.
NEW QUESTION # 56
Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?
- A. Workshops.
- B. Interviews.
- C. Observation.
- D. Surveys.
Answer: D
Explanation:
Self-assessment of controls can be efficiently conducted using various client-facilitated approaches. The choice of method depends on factors such as the size of the department, the nature of the controls, and the need for comprehensive feedback.
* Efficiency in Large Groups:Surveys are particularly effective for large groups (such as a 200-person department) as they allow for the collection of data from many individuals quickly and efficiently.
NEW QUESTION # 57
Which of the following is most likely to impair the organizational independence of the internal audit activity?
- A. The CAE reports functionally to the CEO.
- B. The chief audit executive (CAE) reports administratively to the chief financial officer
- C. The CAE managed the finance department for the past five years.
- D. The CAE oversees the effectiveness of the organization's risk management function.
Answer: C
Explanation:
Impairment of Independence: The organizational independence of the internal audit activity can be impaired if the CAE has had significant roles in management, such as managing the finance department. This prior involvement may create a conflict of interest or perceived bias.
IIA Standards on Independence: The IIA emphasizes the importance of independence and objectivity in internal auditing. Any prior management role, especially in the department being audited, can compromise the CAE's objectivity.
NEW QUESTION # 58
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