Free IIA-CHAL-QISA Exam Dumps

Question 41

When determining the level of staff and resources to be dedicated to an assurance engagement, which of the following would be the most relevant to the chief audit executive?

A. The overall adequacy of the internal audit activity's resources
B. The availability of guest auditors for the engagement
C. The number of internal auditors used for the previous review of the same area.
D. The available resources with the specific skill set required

Correct Answer:D
When determining the level of staff and resources to dedicate to an assurance engagement, the most critical factor for the chief audit executive (CAE) is ensuring that the available resources possess the specific skill sets required for the engagement. This ensures that the internal audit team can effectively address the unique challenges and risks associated with the audit.
✑ Skill Set Relevance: The CAE must match the skills and knowledge of the audit
team to the specific requirements of the audit engagement. This includes technical expertise, industry knowledge, and any specialized skills needed for the audit.
✑ Resource Allocation: Effective allocation involves not just the number of auditors
but ensuring they have the right competencies to perform the audit tasks proficiently.
✑ Impact on Audit Quality: Allocating resources with the appropriate skill set ensures
the audit is thorough and of high quality, reducing the risk of overlooking critical issues.
References:
✑ "Managing Internal Audit Activities," which discusses the importance of aligning audit resources with the necessary skills for specific engagements .

Question 42

A bicycle manufacturer incurs a combination of fixed and variable costs with the production of each bicycle. Which of the following statements is true regarding these costs?

A. if the number of bicycles produced is increased by 15 percent, the variable cost per unit will increase proportionally
B. The fixed cost per unit will vary directly based on the number of bicycles produced during the production cycle.
C. The total variable cost will vary proportionally and inversely with the number of bicycles produced during a production run.
D. if the number of bicycles produced is increased by 30 percent, the fixed cost per unit will decline.

Correct Answer:D
✑ Introduction:
✑ Cost Characteristics:
✑ Options Analysis:
✑ Conclusion:
:
Cost Accounting Standards and Practices .

Question 43

An internal audit activity has to confirm the validity of the activities reported by a grantee that received a chantable contribution from the organization Which of the following methods would best help meet this objective?

A. Visiting the grantee to assess whether the execution of the project was in line with the defined grant scope.
B. Verifying that the grantee's final report is in line with what was depicted in the initial budget request.
C. Reconciling general ledger accounts used by management of the area under review for reflecting expenses on charitable contributions
D. Interviewing employees of the corporate affairs department, which is responsible for charitable activities

Correct Answer:A
✑ Introduction:
✑ Effective Verification Methods:
✑ Options Analysis:
✑ Conclusion:
:
Internal Audit Standards and Practice Guides .

Question 44

According to IIA guidance, which of the following statements is true regarding engagement planning?

A. For both assurance and consulting engagements, planning typically occurs after the engagement objectives and scope have already been determined.
B. The expectations and objectives of an assurance engagement are usually determined b
C. or in conjunction with, the engagement client
D. Internal auditors may not need to complete a preliminary risk assessment for a consulting engagement as they would when planning an assurance engagement.
E. For both consulting and assurance engagements, internal auditors usually form the engagement objectives prior to completing the preliminary risk assessment

Correct Answer:B
The expectations and objectives of an assurance engagement are often determined in conjunction with the engagement client, aligning with the client's needs and the scope of the engagement. In consulting engagements, internal auditors provide advice and services
tailored to the client's requests, which may not always follow a preliminary risk assessment process like in assurance engagements.
: The IIA??s International Standards for the Professional Practice of Internal Auditing
(Standards) provide detailed guidance on this aspect of engagement planning, particularly in Standards 2200 and 2201.

Question 45

A chief audit executive (CAE) following up on action plans from previously completed audits identifies that management has determined that certain action plans are no longer necessary If the CAE disagrees with managements decision, which of the following is the most appropriate next step for the CAE to take?

A. The CAE must discuss the matter with senior management
B. The CAE must discuss the matter with key shareholders.
C. The CAE must discuss the matter with legal counsel.
D. The CAE must discuss the matter with the board

Correct Answer:D
✑ Introduction:
✑ Escalation Process:
✑ Options Analysis:
✑ Conclusion:
:
Internal Audit Standards and Practice Guides .