IIA-CHAL-QISA Exam Practice Test Instant Access

Question 1

Which of the following documents are internal auditors most likely to be asked to sign as a demonstration of due professional care?

AA description of their job responsibilities.

BA non-disclosure agreement

CAn annual declaration of commitment to The HAs Code of Ethics.

DThe internal audit charter

Answer : C

Professional Responsibility: Internal auditors are expected to demonstrate their commitment to professional standards and ethics.

Code of Ethics: The IIA's Code of Ethics outlines principles that internal auditors must follow, including integrity, objectivity, confidentiality, and competency.

Annual Declaration: Signing an annual declaration reinforces the auditor's commitment to these principles and ensures ongoing adherence to the professional standards.

Demonstration of Due Care: By signing this declaration, auditors formally acknowledge their responsibility to uphold ethical standards, which is a demonstration of due professional care.

The IIA's Code of Ethics.

The IIA's International Standards for the Professional Practice of Internal Auditing.

Question 2

Which of the following is an example of a directive control?

ASegregation of duties

BException reports

CTraining programs,

DSupervisory review.

Answer : C

Directive controls are designed to encourage desired behavior or outcomes.

Option A: Segregation of duties is a preventive control, not a directive control.

Option B: Exception reports are detective controls.

Option D: Supervisory review is also a preventive or detective control.

Option C: Training programs are directive controls as they guide employees on the correct procedures and practices to follow.

Question 3

According to IIA guidance, which of the following statements is true regarding audit workpapers?

AReview notes on audit workpapers must be retained to provide a record of questions raised by the reviewer.

BAudit workpaper documentation policies are reviewed and approved by the audit committee.

CManagement of the department being audited should review the prepared workpapers for accuracy.

DAudit workpaper preparation contributes to the professional development of the internal audit staff.

Answer : D

Audit workpapers are essential documents that provide evidence of the audit work performed and the conclusions reached.

Option A: While review notes can be useful, they do not need to be retained if they do not add value to the audit evidence.

Option B: Audit workpaper documentation policies are typically established by the internal audit department, not reviewed or approved by the audit committee.

Option C: Management should not review the workpapers for accuracy as this could compromise the independence of the audit.

Option D: Preparing workpapers helps auditors document their work thoroughly, facilitating learning and professional development.

Question 4

A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days What conditions would an auditor look for as an Indicator of employee theft of food from a specific store?

AOn a rainy day. total sales are greater than expected when compared to the cost of ingredients used

BOn a sunny day. total sales are less than expected when compared to the cost of ingredients used.

CBoth total sales and cost of ingredients used are greater than expected.

DBoth total sales and cost of ingredients used are less than expected.

Answer : A

The statistical model indicates that daily sales have a direct relationship with the cost of ingredients used and an inverse relationship with rainy days.

Option A: On a rainy day, if total sales are greater than expected compared to the cost of ingredients used, it may indicate discrepancies that could be a sign of employee theft. For instance, if ingredients are used but not reflected in the sales, it suggests that items might be missing (stolen).

Option B: On a sunny day, lower-than-expected sales compared to the cost of ingredients could indicate wastage but not necessarily theft.

Option C and D: Both scenarios where total sales and the cost of ingredients are higher or lower than expected do not specifically point to theft without additional context.

Question 5

Which of the following best describes why an internal audit activity would consider sending written preliminary observations to the audit client?

AWritten observations allow for more interpretation.

BWritten observations help the internal auditors express the significance.

CWritten and verbal observations are equally effective.

DWritten observations limit premature agreement

Answer : C

Audit workpapers are essential documents that provide evidence of the audit work performed and the conclusions reached.

Option A: While review notes can be useful, they do not need to be retained if they do not add value to the audit evidence.

Option B: Audit workpaper documentation policies are typically established by the internal audit department, not reviewed or approved by the audit committee.

Option C: Management should not review the workpapers for accuracy as this could compromise the independence of the audit.

Option D: Preparing workpapers helps auditors document their work thoroughly, facilitating learning and professional development.

Question 6

A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwide practices is most likely to be acceptable to the CAE?

AInternal auditors' performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits

BStandard training for each employee, including internal auditors, is 10 hours per year.

CTo enhance efficiency, Internal auditors should not be rotated regularly among engagements

DHiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.

Answer : A

The statistical model indicates that daily sales have a direct relationship with the cost of ingredients used and an inverse relationship with rainy days.

Option B: On a sunny day, lower-than-expected sales compared to the cost of ingredients could indicate wastage but not necessarily theft.

Option C and D: Both scenarios where total sales and the cost of ingredients are higher or lower than expected do not specifically point to theft without additional context.

Question 7

The internal audit activity is currently working on several engagements, including a consulting engagement on the management process in the human resources department. Which of the following actions should the chief audit executive take to most efficiently and effectively ensure the quality of the engagement?

AAssign an experienced manager to monitor the whole engagement process.

BEmploy fieldwork peer review to enhance the work quality.

CRequire internal auditors to follow a standardized work program.

DPersonally supervise the engagement

Answer : B

Ensuring Quality: To ensure the quality of the consulting engagement in the human resources department, the chief audit executive (CAE) can implement a fieldwork peer review process. This involves having experienced auditors review the work of their colleagues to ensure adherence to audit standards and procedures.

Efficiency and Effectiveness:

Peer Review: This method helps identify any issues or improvements needed in real-time, enhancing both the efficiency and effectiveness of the audit process.

Standardized Work Programs: While standardized work programs (option C) provide consistency, peer review adds a layer of quality assurance.

Supervision: Personal supervision by the CAE (option D) is not practical for ensuring the quality of all engagements.

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