Free IIA-CHAL-QISA Exam Dumps

Question 6

Which of the following statements is true regarding managements use of judgement to design, implement, and conduct internal control?

A. The use of judgment enhances managements ability to make better decisions about internal control, but cannot guarantee perfect outcomes.
B. introducing judgment generally diminishes managements ability to make good decisions about internal control
C. It is inappropriate for management to exercise judgement in areas such as specifying and using suitable accounting principles.
D. It is inappropriate for management to exercise judgement in assessing whether components are present, functioning, and operating together

Correct Answer:A
Management's use of judgment in designing, implementing, and conducting internal control is crucial for adapting to unique circumstances and complexities within an organization.
✑ Enhanced Decision-Making: Judgment allows management to tailor controls to the
specific risks and operational realities of the organization, improving overall effectiveness.
✑ Limitations: While judgment improves decision-making, it cannot eliminate all risks
or guarantee perfect outcomes due to inherent uncertainties and limitations in predicting all possible scenarios.
✑ Appropriate Use: It is appropriate for management to use judgment in applying
accounting principles and assessing internal controls' presence and functioning.
✑ Inappropriateness: It would be incorrect to say that judgment diminishes decision- making capabilities or is inappropriate for assessing internal control components.
References:
✑ "Internal Control – Integrated Framework" by COSO, which highlights the importance and limitations of judgment in internal control processes.

Question 7

Which of the following is most appropriate for internal auditors to do during the internal audit recommendations monitoring process?

A. Report the monitoring status to senior management when requested.
B. Assist management with implementing corrective actions.
C. Determine the frequency and approach to monitoring
D. Include all types of observations in the monitoring process

Correct Answer:C
✑ Introduction:
✑ Responsibilities in Monitoring:
✑ Options Analysis:
✑ Conclusion:
:
Internal Audit Standards and Practice Guides .

Question 8

According to IIA guidance, which of the following objectives was most likely formulated for a non-assurance engagement?

A. The internal audit activity will assess the effects of changes in maintenance strategy on the availability of production equipment
B. The internal audit activity will inform management on the possible risks of moving the data warehouse to a cloud server maintained by a third party.
C. The internal audit activity will ascertain whether the data center security arrangements are compliant with agreed terms
D. The internal audit activity will ensure equipment downtime risks have been managed in accordance with the internal policy.

Correct Answer:B
Non-Assurance Engagements: Non-assurance engagements focus on advisory and consulting services rather than providing an independent assessment. These engagements aim to add value by offering insights and recommendations to management. Objective Characteristics:
✑ Informing Management: Providing information on potential risks and advising on
risk management strategies is typical for non-assurance engagements. This helps management make informed decisions and manage risks effectively.
✑ Assessment and Compliance: Options A, C, and D are more aligned with
assurance engagements, where the internal audit activity provides an independent assessment or ensures compliance with policies and procedures.
IIA Guidance:
✑ Standard 2120 – Risk Management: Internal auditors must evaluate and contribute to the improvement of risk management processes, often through advisory services in non-assurance roles.
References:
✑ Non-assurance engagements focus on informing and advising management about risks, improvements, and strategic decisions, as exemplified by informing management about risks related to moving the data warehouse to a third-party cloud server.

Question 9

When reviewing workpapers, engagement supervisors may ask for additional evidence or clarification via review notes. According to IIA guidance, which of the following statements is true regarding the engagement supervisors review notes?

A. The review notes may be cleared from the final documentation once the engagement supervisors concerns have been addressed
B. Management of the area under review must address the engagement supervisors review notes before the audit report can be finalized.
C. The chief audit executive must initial or sign the engagement supervisors review notes to provide evidence of appropriate engagement supervision.
D. Review notes provide documented proof that the engagement is supervised properly and must be retained for the quality assurance and improvement program

Correct Answer:A
✑ Introduction:
✑ IIA Guidance on Review Notes:
✑ Options Analysis:
✑ Conclusion:
:IIA??s International Professional Practices Framework (IPPF).

Question 10

An internal auditor has discovered that duplicate payments were made to one vendor Management has recouped the duplicate payments as a corrective action Which of the following describes managements action in this case?

A. A condition-based action plan
B. A cause-based action plan.
C. A root cause-based action plan.
D. An effect-based action plan.

Correct Answer:D
✑ Introduction:
✑ Types of Action Plans:
✑ Options Analysis:
✑ Conclusion:
:
Internal Audit Standards and Practice Guides .