IIA IIA-CIA-Part1 Quiz 43 Topic 6 Questions 211-215

Question: 1

If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

ATerminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.

BTerminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

CRefer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

DSeek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

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Question: 2

This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline.

Which of the following would be the best course of action for the CAE to take?

AContinue with the engagement in order to meet the regulatory deadline, but highlight areas in the final report that might need to be revised in the future.

BAsk that a senior member of the organization's IT department with the required systems expertise join the audit team to assist in completing the engagement.

CDelay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement.

DRemove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the necessary expertise.

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Question: 3

A candidate has applied for an entry level internal audit position. The candidate holds a CISA (Certified Information Systems Auditor) designation, and has six months of audit experience, but limited knowledge of accounting principles and techniques. According to the IIA guidance, which of the following is the most relevant reason for the chief audit executive to consider this candidate?

AOther internal auditors possess sufficient knowledge of accounting principles and techniques.

BThe candidate's information systems knowledge and real-world experience in internal auditing.

CAccounting skills can be learned over time with appropriate training.

DAn entry level position does not require expertise in any particular area.

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Question: 4

Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?

AWhich sampling methodology to select for testing.

BWhich fields to examine on each invoice.

CWhether an individual expenditure is allowable.

DWhat level of noncompliance is acceptable.

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Question: 5

According to the Standards, which of the following is not a consideration when exercising due professional care for an assurance engagement?

AThe relative complexity, materiality, or significance of matters to which assurance procedures are applied.

BThe extent of assurance services necessary to ensure that all risks are identified.

CThe cost of providing the assurance services in relation to potential benefits.

DThe probability of significant errors, irregularities or instances of noncompliance.

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IIA IIA-CIA-Part1 Quiz:43 Topic:6 Questions:211-215