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IIA Practice of Internal Auditing Sample Questions (Q403-Q408):
NEW QUESTION # 403
Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?
- A. Observation of selected aircraft while they are being refueled and cleaned.
- B. Comparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.
- C. Time cards completed by aircraft cleaning and fueling crews.
- D. Vendor fuel invoices that have been reconciled to inventory records.
Answer: A
NEW QUESTION # 404
An organization s inventory is stored m multiple warehouses. During an inventory audit which of the following activities would most benefit from the use of computerized audit tools?
- A. Assigning the tolerable deviation rate to determine the sample size
- B. Verifying the existence of inventory items in each warehouse
- C. Confirming that the purchased items are recorded In the correct period
- D. Valuating the obsolete Inventory from all the warehouse locations
Answer: D
Explanation:
During an inventory audit, the activity that would most benefit from the use of computerized audit tools (CAATs) is valuating the obsolete inventory from all the warehouse locations. CAATs can efficiently analyze large volumes of inventory data from multiple warehouses, identify patterns and trends, and automate the valuation process, making it more accurate and less time-consuming compared to manual methods.
Reference:
IIA Standards: 1210.A3 - Proficiency in the Use of CAATs
IIA Practice Guide: Use of Technology in Auditing
NEW QUESTION # 405
Which of the following internal control attributes should internal auditors consider testing during a review of the board of directors?
- A. The presence of an independent critical mass
- B. The established philosophy and operating style of senior management
- C. The organization's employee recruiting and retention policies
- D. The articulated internal control objectives of the organization
Answer: A
Explanation:
When reviewing the board of directors, internal auditors should consider testing the presence of an independent critical mass. This refers to the existence of a sufficient number of independent directors who can provide unbiased judgment and oversight. Independence is a cornerstone of effective governance, ensuring that decisions are made in the best interest of the organization without undue influence from management.
This attribute is crucial for maintaining the integrity and objectivity of the board's decisions and actions.References: IIA's Practice Guide on Assessing Organizational Governance.
NEW QUESTION # 406
The internal audit activity performs the following sequence of risk management activities: identification, analysis, and evaluation. According to IIA guidance, which of the following assurance approaches does this describe?
- A. Maturity model approach.
- B. Key principles approach.
- C. Enterprise-wide risk management approach.
- D. Process elements approach.
Answer: D
NEW QUESTION # 407
Which of the following risk assessment approaches involves gathering data from work team representing different levels of an organisation?
- A. Facilitated team workshops
- B. Management produced analysis 0
- C. Surveys
- D. Weighted risk factors
Answer: C
NEW QUESTION # 408
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