IT Certification Exam Questions & Answers

Q30. The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance, which of the following qualitative metrics would be appropriate for the CAE to use?
1. Average client customer satisfaction score for a given year.
2. Client survey comments on how to improve the IAA.
3. Auditor interviews once an audit has been completed.
4. Percentage of audits completed within 90 days.

Q31. According to IIA guidance, which of the following statements is true regarding periodic internal assessments of the internal audit activity?

Q32. Which of the following controls could an internal auditor reasonably conclude is effective by observing the physical controls of a large server room?

Q33. Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.

Q34. The manager for an organization’s accounts payable department resigned her post in that capacity. Three months later, she was recruited to the internal audit activity and has been working with the audit team for the last eight months. Which of the following assignments would the newly hired internal auditor be able to execute without any impairments to independence or objectivity?

Q35. Management is developing and implementing a risk and control framework for use throughout the organization. Which of the following elements should be included in the organization’s control framework?
1. Appropriate levels of authority and responsibility.
2. Supervision of staff and appropriate review of work.
3. The seniority of management in the organization.
4. The ability to trace each transaction to an accountable and responsible individual.

Q36. An internal audit charter should do which of the following?

Q37. According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising due professional care?
When auditing investments, the auditor identified instruments with which he was unfamiliar.

Q38. Internal auditors must exercise due professional care by considering which of the following?
1. Cost of assurance in relation to potential benefits.
2. Adequacy and effectiveness of governance, risk management, and control processes.
3. Management’s competency level in the area being evaluated.
4. Probability of significant errors, fraud, or noncompliance.

Q39. Which of the following risk management activities is most appropriate for an internal auditor to undertake?

Q40. What type of risk management strategy is being employed when an organization installs two firewalls to provide protection from unauthorized access to the network?

Q41. Which of the following behaviors could represent a significant ethical risk if exhibited by an organization’s board?

Q42. An auditor identifies three errors in the sample of 25 entries selected for review (a 12 percent error rate).
Based on this result, the auditor assumes that approximately 59 of the total population of 492 entries are incorrect. To reach this assumption, the auditor has used a technique known as which of the following?

Q43. Which type of objectives can best be described as broad goals that promote the effective and efficient use of resources?

Q44. A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annua snowfall for the coming winter. Which of the following best describes this type of risk?

Q45. According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?
1. Identification.
2. Mitigation.
3. Remediation.
4. Reduction.

Q46. Which of the following is an example of a detective control?

Q47. An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

Q48. An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization.
Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?

Q49. An internal auditor in a small broadcasting organization was assigned to review the revenue collection process.
The auditor discovered that some checks from three customers were never recorded in the organization’s financial records. Which of the following documents would be the least useful for the auditor to verify the finding?

Q50. According to The MA Code of Ethics, which of the following is one of the rules of conduct for objectivity?

Q51. Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor’s most appropriate next step?

Q52. An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

Q53. Which of the following audit techniques is used to evaluate control design while also embodying auditing’s analytical process?