Free IIA-CHAL-QISA Exam Dumps

Question 16

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

A. A description of their job responsibilities.
B. A non-disclosure agreement
C. An annual declaration of commitment to The HAs Code of Ethics.
D. The internal audit charter

Correct 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.
References:
✑ The IIA??s Code of Ethics.
✑ The IIA??s International Standards for the Professional Practice of Internal Auditing.

Question 17

Which requirement should the chief audit executive consider when communicating results of the quality assurance and improvement program to the board of a large organization?

A. The internal assessment results should be discussed once every five years
B. The rating conclusions and the impact from results of the external assessment should be explained
C. The results of the external assessment should be discussed every seven years.
D. The qualifications and independence of the internal assessment team should be discussed

Correct Answer:B
Discussing the impact helps the board understand how the results affect the internal audit's ability to fulfill its responsibilities and improve its processes.
✑ Transparency: Clear communication of these aspects helps build trust and provides a basis for informed decision-making by the board.
References:
✑ "Internal Audit Quality Assurance and Improvement Program," which emphasizes the importance of explaining rating conclusions and impacts to the board .

Question 18

Which of the following types of policies best helps promote objectivity in the internal audit activity??s work?

A. Policies that are distributed to all members of the internal audit activity and require a signed acknowledgment.
B. Policies that match internal auditors' performance with feedback from management of the area under review
C. Policies that keep internal auditors in areas where they have vast audit expertise.
D. Policies that provide examples of Inappropriate business relationships

Correct Answer:D
Promoting objectivity in internal auditing involves ensuring that auditors avoid conflicts of
interest and maintain independence in both fact and appearance. Policies that clearly define and give examples of inappropriate business relationships help auditors understand and avoid situations that could impair their objectivity.
: IIA Standard 1120 (Individual Objectivity) emphasizes the importance of internal auditors
maintaining an unbiased mindset and avoiding conflicts of interest.

Question 19

Which of the following is an example of a properly supervised engagement?

A. Auditors are asked to keep a daily record of their activity for review by the auditor in charge following the engagement.
B. The senior internal auditor requires each auditor to review and initial colleagues?? workpapers for completeness and format
C. A new internal auditor is accompanied by an experienced auditor during a highly sensitive fraud investigation.
D. The auditor in charge provides reasonable assurance that engagement objectives were met

Correct Answer:D
Supervision in Internal Audit: Effective supervision ensures that the engagement is carried out according to plan, objectives are met, and quality standards are maintained. It involves guiding, mentoring, and reviewing the work of auditors throughout the engagement.
IIA Standards:
✑ Standard 2340 – Engagement Supervision: Internal audit engagements must be properly supervised to ensure objectives are achieved, quality is maintained, and staff are developed.
✑ Proper supervision includes overseeing the engagement, providing direction, and ensuring that work complies with standards and achieves engagement objectives.
Examples of Proper Supervision:
✑ Reasonable Assurance: The auditor in charge providing reasonable assurance that engagement objectives were met is a fundamental aspect of effective supervision. It ensures that the engagement delivers the intended outcomes and adheres to quality standards.
✑ Daily Records and Workpaper Review: Options A and B involve administrative tasks and peer review, which are supportive but do not alone constitute comprehensive supervision.
✑ Accompanied Training: Option C involves on-the-job training, which is beneficial but not the primary aspect of engagement supervision.

Question 20

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. Improved capability of evaluating fraud risks within the organization.
D. Greater understanding of fraud through better evidence collection

Correct Answer:D
Forensic auditing techniques provide a systematic approach to collecting and analyzing evidence related to fraud. The primary benefit of these techniques is the enhanced ability to gather comprehensive and detailed evidence, which leads to a greater understanding of how the fraud occurred and who was involved. This detailed evidence collection supports legal proceedings and helps in identifying control weaknesses that need to be addressed to prevent future frauds.
References:
✑ "Forensic Auditing: Principles and Practices," which outlines the importance of evidence collection in understanding and combating fraud.