Qualified Info Systems Auditor CIA Challenge Exam - IIA-CHAL-QISA Exam Practice Test

Question 1

Internal auditors map a process by documenting the steps in the process, which provides a framework for understanding Which of the following is a reason to use narrative memoranda?

A. To identify individuals who perform key roles

B. To document which outputs support other activities.

C. To create a detailed risk assessment

D. To explain a simple process.

Correct Answer: D

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Question 2

Which of the following statements is true regarding the reporting of tangible and intangible assets?

A. The organization must expense any cost incurred in developing a plant asset

B. Due to their indefinite nature, intangible assets are not subject to amortization.

C. For plant assets, cost includes the purchase price and the cost of design and construction

D. For intangible assets, cost includes the purchase price and development costs.

Correct Answer: C

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Question 3

An internal auditor is asked to determine why the production line for a large manufacturing organization has been experiencing shutdowns due to unavailable parts The auditor learns that production data used for generating automatic purchases via electronic interchange is collected on personal computers connected by a local area network (LAN) Purchases are made from authorized vendors based on both the production plans for the next month and an authorized materials requirements plan (MRP) that identifies the parts needed per unit of production. The auditor suspects the shutdowns are occurring because purchasing requirements have not been updated for changes in production techniques. Which of the following audit procedures should be used to test the auditor's theory?

A. Select a sample of production estimates and MRPs for several periods and trace them into the system to determine that input is accurate

B. Compare purchase orders generated from test data Input into the LAN with purchase orders generated from production data for the most recent period.

C. Compare the parts needed based on current production estimates and the MRP for the revised production techniques with the purchase orders generated from the system for the same period

D. Develop a report of excess inventory and compare the inventory with current production volume.

Correct Answer: C

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Question 4

Senior management asks internal audit to design and implement a new fraud monitoring process.
Which response is MOST appropriate?

A. Refuse all involvement because fraud is outside internal audit's scope.

B. Design the process but avoid implementation.

C. Provide consulting advice while avoiding management responsibility.

D. Accept the assignment because fraud prevention is part of internal audit's role.

Correct Answer: C

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Question 5

An internal auditor discovered fraud while performing an audit of an organization's procurement process. Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?

A. Enhanced capability to prevent frauds from occurring.

B. Greater assurance that procurement frauds will be detected in a timely manner

C. Greater understanding of fraud through better evidence collection

D. Improved capability of evaluating fraud risks within the organization.

Correct Answer: C

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Question 6

Which of the following best demonstrates internal auditors performing their work with proficiency?

A. Internal auditors work collaboratively with their engagement team.

B. Internal auditors adhere to The IIA's Code of Ethics.

C. internal auditors meet with operational management at each phase of the audit process.

D. Internal auditors complete a program of continuing professional development.

Correct Answer: D

Question 7

Which of the following is most likely the subject of a periodic report from the chief audit executive to the board?

A. Oversight of the coordination between the internal audit activity and independent outside auditors

B. Management's assertions regarding the system of internal controls.

C. A complete, accurate, and comprehensive account of engagement observations and recommendations.

D. The internal audit activity's purpose, authority, responsibility, and performance relative to plan.

Correct Answer: D

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Question 8

Which of the following would most likely be found in an organization that uses a decentralized organizational structure?

A. There are clear expectations set for employees.

B. There is a defined code for employee behavior

C. There are electronic monitoring techniques employed

D. There is a higher reliance on organizational culture

Correct Answer: D

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Question 9

According to IIA guidance, which of the following statements about analytical procedures is true?

A. Analytical procedures begin after the engagements planning phase.

B. Analytical procedures are computer-assisted audit techniques

C. Analytical procedures provide internal auditors with explainable results.

D. Analytical procedures compare information against expectations

Correct Answer: D

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Question 10

While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditors relative. Which course of action should the auditor take?

A. Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

B. Immediately withdraw from the audit engagement

C. Disclose in the engagement final communication that the relative Is a customer

D. Proceed with the audit engagement, but do not include the relative's information.

Correct Answer: A

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Question 11

Which of the following situations best applies to an organization that uses a project, rather than a process, to accomplish its business activities?

A. A clothing company designs, makes, and sells a new item.

B. A manufacturing organization acquires component parts from a contracted vendor

C. A commercial construction company is hired to build a warehouse.

D. A city department sets up a new firefighter training program.

Correct Answer: C

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IIA Qualified Info Systems Auditor CIA Challenge - IIA-CHAL-QISA Exam Practice Test

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