Free IIA-CHAL-QISA Exam Dumps

Question 36

Which of the following activities best demonstrates an internal auditor's commitment to developing professional competencies?

A. Requesting to be part of all engagements on the annual audit plan
B. Attending a series of locally offered training courses.
C. Completing a skills assessment and development plan for targeted training needs.
D. Attending a webinar on how to use data analytics

Correct Answer:C
✑ Introduction:
✑ Commitment to Development:
✑ Options Analysis:
✑ Conclusion:
:
Internal Audit Standards and Practice Guides

Question 37

Which of the following best demonstrates internal auditors performing their work with proficiency?

A. internal auditors meet with operational management at each phase of the audit process.
B. Internal auditors adhere to The IIA's Code of Ethics.
C. Internal auditors work collaboratively with their engagement team.
D. Internal auditors complete a program of continuing professional development.

Correct Answer:D
Proficiency in internal auditing is not only about technical skills but also involves continuous education and staying updated with the latest practices and standards in the field.
Option D reflects the commitment to ongoing professional development, ensuring that internal auditors maintain and enhance their proficiency over time.
The Institute of Internal Auditors (IIA) emphasizes the importance of continuing professional development as a means to ensure auditors remain competent in their roles

Question 38

An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies inclusion of this clause in the reports?

A. Internal audit activity policies and engagement records provide relevant, sufficient, and competent evidence that the statement is correct.
B. The audit committee has reviewed the annual self-assessment results and approved the use of the clause.
C. The self-assessment results were validated by a qualified external review team three years prior.
D. The internal audit charter, approved by the audit committee, requires conformance withthe Standards

Correct Answer:C
According to the IIA Standards, an internal audit activity must have an external assessment conducted at least once every five years by a qualified, independent reviewer or review team from outside the organization. The validation by an external team ensures that the internal audit activity's self-assessments and quality assurance practices meet the required standards.
: IIA Standard 1312 (External Assessments) and IIA Standard 1320 (Reporting on the
Quality Assurance and Improvement Program) provide detailed guidelines for this process.

Question 39

Which of the following best describes the risk contained in an initial public offering for a new stock?

A. Residual risk.
B. Net risk.
C. Inherent risk.
D. Underlying risk

Correct Answer:C
✑ Introduction:
✑ IPO Risks:
✑ Options Analysis:
✑ Conclusion:
:
Audit Standards and Securities Regulation Guidelines

Question 40

Which of the following is most likely to impair the organizational independence of the internal audit activity?

A. The chief audit executive (CAE) reports administratively to the chief financial officer
B. The CAE oversees the effectiveness of the organization??s risk management function.
C. The CAE reports functionally to the CEO.
D. The CAE managed the finance department for the past five years.

Correct Answer:D
✑ Impairment of Independence: The organizational independence of the internal audit activity can be impaired if the CAE has had significant roles in management, such as managing the finance department. This prior involvement may create a conflict of interest or perceived bias.
✑ IIA Standards on Independence: The IIA emphasizes the importance of independence and objectivity in internal auditing. Any prior management role, especially in the department being audited, can compromise the CAE's objectivity.
✑ Examples of Impairment:
: IIA Standard 1100 - Independence and Objectivity.