Real IIA-CHAL-QISA Dumps (V8.02) – Pass the CIA Challenge Exam and Achieve Your Qualified Info Systems Auditor CIA Challenge Certification Goals

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

2. The internal audit activity is responsible for which of the following actions related to an organization’s internal controls?

3. 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?

4. Which of the following could increase risks to the organization’s control environment?

5. According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

6. The board of directors of a global organization has found an increased number of reported cases of unethical practices since last year.

To assist the board in gaining a better understanding of the degree of ethics awareness within the organization, which of the following actions should be undertaken?

7. According to IIA guidance, which of the following best describes the purpose of a planning memorandum for an audit engagement?

8. Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department.

Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?

9. According to IIA guidance, which of the following statements is true regarding due professional care?

10. According to the IIA Code of Ethics, which of the following is required with regard to communicating results?

11. Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

12. The internal audit activity plans to assess the effectiveness of management’s self-assessment activities regarding the risk management process.

Which of the following procedures would be most appropriate to accomplish this objective?

13. Which of the following statements is true regarding engagement planning?

14. According to IIA guidance, which of the following statements regarding the internal audit charter is true?

15. Which of the following would be the most effective fraud prevention control?

16. While conducting an engagement in the procurement department, the internal auditor noticed that the department head’s travel reports showed minor travel expenses, and there were no charges for hotels, meals, or transportation However, the auditor knew that the department head frequently traveled worldwide to meet with suppliers and visit their production sites.

Which of the following would be the most appropriate next step for the auditor?

17. Which of the following statements best describes the difference between risk appetite and risk tolerance?

18. Which of the following is a true statement regarding whistleblowing?

19. 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?

20. An internal auditor observed that sales staff are able to modify or cancel an order in the system prior to shipping She wonders whether they can also modify orders after shipping.

Which of the following types of controls should she examine?

21. The organization’s internal audit charter was last updated six years ago to update the charter, which of the following actions is most appropriate for the chief audit executive to take?

22. What would be the effect if an organization paid one of its liabilities twice during the year, in error?

23. Which of the following best demonstrates that the internal audit activity is using due professional care?

24. A manager has allowed a subordinate employee to have greater control and responsibility over the tasks that he performs.

This is an example of which of the following?

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

26. 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?

27. Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s records

4 Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services

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

29. Which of the following statements is true regarding partnership liquidation?

30. Organizations that adopt just-in-time purchasing systems often experience which of the following?

31. Which of the following statements is true regarding managements use of judgement to design, implement, and conduct internal control?

32. Identify and mitigate risks to help meet the CSR program objectives A.1,2, and 3.

B. 1.2. and 4.

C. 1, 3, and 4.

D. 2. 3. and 4.

33. An organization's health-care insurance costs have been rising approximately 10 percent per year for several years.

Which of the following analytical review procedures would best evaluate the reasonableness of the increase in health-care costs?

34. Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?

35. With regard to project management, which of the following statements about project crashing is true?

36. When is an organic organizational structure likely to be more successful than a mechanistic organizational structure?

37. According to Herzberg’s Two-Factor Theory of Motivation, which of the following factors are mentioned most often by satisfied employees9

38. Which of the following is most likely to be considered a control weakness?

39. 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?

40. Which of the following activities demonstrates an example of the chief audit executive performing residual risk assessment?

41. According to ISO 31000, which of the following statements is correct?

42. 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?

43. Which of the following is applicable to both a job order cost system and a process cost system'?

44. What is the primary reason that audit supervision includes approval of the engagement report?

45. A multinational organization has multiple divisions that sell their products internally to other divisions.

When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

46. The audit plan requires a review of the testing procedures used in pre-production of a large information system prior to its live launch.

If the chief audit executive (CAE) is uncertain that the current audit team has all the required knowledge to conduct the engagement, which of the following would be the most appropriate course of action for the CAE to take to preserve independence?

47. For a new board chair who has not previously served on the organization’s board, which of the following steps should first be undertaken to ensure effective leadership to the board*?

48. According to IIA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the Internal audit activity^

49. Which of the following is the most important determinant of the objectives and scope of assurance engagements?

The organizational chart, business objectives, and policies and procedures of the area to be reviewed

50. An internal auditor is asked to determine why the production line for a large manufacturing organization has been experiencing shutdowns due to unavailable parts The auditor learns that production data used for generating automatic purchases via electronic interchange is collected on personal computers connected by a local area network (LAN) Purchases are made from authorized vendors based on both the production plans for the next month and an authorized materials requirements plan (MRP) that identifies the parts needed per unit of production. The auditor suspects the shutdowns are occurring because purchasing requirements have not been updated for changes in production techniques.

Which of the following audit procedures should be used to test the auditor's theory?

51. In an assurance engagement focused on the adequacy of organization wide risk management practices, which of the following best describes a primary area of interest for the engagement?

52. Which of the following actions should the internal audit activity take during an audit engagement when examining the effectiveness of risk management processes?

53. A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy.

Which of the following is the most appropriate idea to include?

54. According to IIA guidance, which of the following would be the best first step to manage risk when a third party is overseeing the organization’s network and data'?

55. Which of the following activities Is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?