Free IIA-CHAL-QISA Exam Dumps

Question 26

Which of the following statements is most accurate with respect to the required elements of the quality assurance and improvement program?

A. Internal assessments provide sufficient objectivity to provide evidence to the board that the internal audit activity understands the organization's control processes.
B. Quality assessments focus on the internal audit activity??s structure, relationships withstakeholders, compliance with the Standards, and internal audit staff proficiency.
C. in order to comply with the Standards, the internal audit activity must obtain an objective assessment of its processes and function at least once a year
D. Internal auditors completing internal assessments must demonstrate certification to perform quality assessments

Correct Answer:B
✑ Understanding Quality Assessments:Quality assessments in internal audit activities are designed to evaluate various aspects such as the structure of the internal audit activity, relationships with stakeholders, compliance with the IIA Standards, and the proficiency of internal audit staff.
✑ Internal Assessments:These include ongoing monitoring of the performance of the internal audit activity and periodic self-assessments or assessments by other persons within the organization with sufficient knowledge of internal audit practices.
✑ External Assessments:External assessments should be conducted at least once every five years by a qualified, independent assessor or assessment team from outside the organization to ensure objectivity and comprehensiveness.
✑ Focus Areas:Quality assessments should focus on compliance with the IIA Standards, the effectiveness of the internal audit activity's structure, the quality of relationships with stakeholders, and the proficiency and continuous professional development of internal audit staff.
✑ Continuous Improvement:The quality assurance and improvement program (QAIP) should be designed to enable the internal audit activity to add value and improve an organization's operations. It helps ensure that the internal audit activity is in compliance with the IIA Standards and Code of Ethics and continuously improves.
References:
✑ IIA Standard 1300 – Quality Assurance and Improvement Program .

Question 27

Which of the following is the next step in understanding a business process once an internal auditor has identified the process?

A. Determine process outputs
B. Determine process inputs.
C. Determine process activities.
D. Determine process goals

Correct Answer:C
Once an internal auditor has identified a business process, the next step is to understand the specific activities involved in that process. This includes mapping out each step or
action taken within the process to gain a detailed understanding of how it operates. Identifying process activities helps in evaluating the efficiency, effectiveness, and potential risks associated with the process

Question 28

According to IIA guidance, which of the following is a limitation of a heat map?

A. Impact cannot be represented on a heat map unless it is quantified in financial terms
B. Impact and likelihood at times cannot be differentiated as to which is more important.
C. A heat map cannot be used unless a risk and control matrix has been developed.
D. Qualitative factors cannot be incorporated into a heat map

Correct Answer:B
✑ Introduction:
✑ Limitations of Heat Maps:
✑ Options Analysis:
✑ Conclusion:
:Internal Audit Standards and Practice Guides .

Question 29

A newly appointed chief audit executive (CAE) of a small organization is developing a resource management plan. Which of the following approaches would be most beneficial to help the CAE obtain details of the internal audit activity's collective knowledge, skills, and other competencies?

A. Review or establish a documented skills assessment of the internal audit staff and gather information from post-audit surveys.
B. Obtain from the human resources department the job descriptions and position requirements forall internal audit staff.
C. Conduct an objective written test of the internal audit staff to assess their knowledge and skills related to core internal audit competencies.
D. Request the internal audit staff to submit a document that summarizes their most recent performance appraisals and post audit reviews.

Correct Answer:A
Conducting a documented skills assessment helps in identifying the existing competencies and any gaps within the internal audit team.
Post-audit surveys can provide feedback on the performance and areas for improvement, which can be used to further refine the skills and competencies of the audit staff (Ref: [16†source])

Question 30

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

A. Residual
B. Net
C. inherent.
D. Accepted.

Correct Answer:C
Inherent Risk: Inherent risk refers to the exposure to risk in its natural state, without considering any controls or mitigation measures. It is the risk that exists before any action is taken to manage it.
✑ Example: In the scenario of a snow removal company, the significant reduction in
annual snowfall represents an inherent risk as it is a natural condition that affects the company's operations.
Other Risk Types:
✑ Residual Risk: This is the risk that remains after controls and mitigation strategies have been applied.
✑ Net Risk: Similar to residual risk, it is the risk that remains after considering existing controls.
✑ Accepted Risk: This is the risk that the organization knowingly accepts after evaluating its impact and likelihood.
Scenario Planning: The exercise of considering the impacts of reduced snowfall helps the company understand its inherent risks and prepare for potential adverse outcomes.