IIA-ACCA IIA ACCA CIA Challenge Exam exact Exam Questions

ACCA CIA Challenge Exam

Last Update 15 hours ago Total Questions : 604

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Question # 61

Which of the following would not be considered part of preliminary survey of an engagement area?

Interviews with individuals affected by the entity.

Functional walk through test.

Analytical reviews.

Sampling scope.

Question # 62

Which of the following is not a primary purpose for conducting a walk-through during the initial stages of an assurance engagement?

To help develop process maps.

To determine segregation of duties.

To identify residual risks.

To test the adequacy of controls.

Question # 63

An employee in the sales department completes a purchase requisition and forwards it to the purchaser. The purchaser places competitive bids and orders the requested items using approved purchase orders. When the employee receives the ordered items, she forwards the packing slips to the accounts payable department. The invoice for the ordered items is sent directly to the sales department, and an administrative assistant in the sales department forwards the invoices to the accounts payable department for payment. Which of the following audit steps best addresses the risk of fraud in the cash receipts process?

Verify that approvals of purchasing documents comply with the authority matrix.

Observe whether the purchase orders are sequentially numbered.

Examine whether the sales department supervisor approves invoices for payment.

Determine whether the accounts payable department reconciles all purchasing documents prior to payment.

Question # 64

A draft internal audit report that cites deficient conditions generally should be reviewed with which of the following groups?

1. The client manager and her superior.

2. Anyone who may object to the report’s validity.

3. Anyone required to take action.

4. The same individuals who receive the final report.

1 only

1 and 2 only

1, 2, and 3

1, 2, and 4

Question # 65

According to IIA guidance, which of the following are appropriate actions for the chief audit executive regarding management ' s response to audit recommendations?

Evaluate and verify management ' s response, and determine the need and scope for additional work.

Evaluate and verify management ' s response, and establish timelines for corrective action by management.

Oversee the corrective actions undertaken by management, and determine the need and scope for additional work.

Oversee the corrective actions undertaken by management, and establish timelines for corrective action by management.

Question # 66

When constructing a staffing schedule for the internal audit activity (IAA), which of the following criteria are most important for the chief audit executive to consider for the effective use of audit resources?

1. The competency and qualifications of the audit staff for specific assignments.

2. The effectiveness of IAA staff performance measures.

3. The number of training hours received by staff auditors compared to the budget.

4. The geographical dispersion of audit staff across the organization.

1 and 3

1 and 4

2 and 3

2 and 4

Question # 67

Which of the following is an example of a risk management avoidance response?

Exiting a marketplace.

Recalling a product.

Obtaining product insurance.

Outsourcing production.

Question # 68

Which of the following statements is true about The IIA Global Internal Audit Competency Framework?

The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.

The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.

The framework lists the core competencies internal auditors should possess before attempting to attain The IIA ' s Certified Internal Auditor certification.

The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.

Question # 69

Which of the following statements is false regarding roles and responsibilities pertaining to risk management and control?

Senior management is charged with overseeing the establishment risk management and control processes.

The chief audit executive is responsible for overseeing the evaluation risk management and control processes.

Operating managers are responsible for assessing risks and controls in their departments.

Internal auditors provide assurance about risk management and control process effectiveness.

Question # 70

Sometimes, internal audit staff may partner with operating managers to rank risks. Which of the following outcomes may be the most beneficial aspects of this strategy?

1. Reappraising risks levels.

2. Providing accurate information to management.

3. Marketing the internal audit activity.

4. Planning safeguards for assets in high-risk areas.

1 and 2.

1 and 3.

2 and 3.

3 and 4.

Question # 71

According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?

Control environment.

Control activities.

Risk assessment.

Monitoring.

Question # 72

Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor ' s most appropriate next step?

Immediately notify management of the area under review and the other internal auditors involved in the engagement.

Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.

Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.

Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.

Question # 73

Which of the following statements is true regarding assurance services provided to clients outside of the organization?

Assurance services for outside clients are not covered under the internal audit charter.

Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.

The nature of assurance services for outside clients should be defined in the internal audit charter.

The nature of assurance services for outside clients is the same as for internal clients.

Question # 74

Which of the following is a common type of payroll fraud?

Unauthorized overtime.

Fictitious employees.

Unearned bonuses or commissions.

Skimming.

Question # 75

Due to price risk from the foreign currency purchase of aviation fuel, an airliner has purchased forward contracts to hedge against fluctuations in the exchange rate. When recalculating the exchange losses from individual purchases of jet fuel, which of the following details does the internal auditor need to validate?

1. The hedge documentation designating the hedge.

2. The spot exchange rate on the transaction date.

3. The terms of the forward contract.

4. The amount of fuel purchased.

1 and 2

1 and 4

2 and 3

3 and 4