Free Practice Questions for IIA IIA-ACCA Exam

Postpone the audit until the CAE hires internal audit staff with the required knowledge.

Ask the audit committee to decide the course of action.

Select the most experienced auditors in the department to perform the engagement.

Hire consultants who possess the required knowledge to perform the engagement.

It cannot be used to test the completeness assertion.

It cannot be used to test the existence assertion.

It cannot be used to test the occurrence assertion.

It cannot be relied upon because the evidence is not persuasive.

When planning assurance and consulting engagements, internal auditors must consider the strategies and objectives of the activity being reviewed.

Internal auditors determine the engagement objectives, scope, and work program for both assurance and consulting services.

Internal auditors must not provide assurance or consulting services for an activity for which they had responsibility within the previous year.

Both assurance and consulting services generally involve the internal auditor, the area under review, senior management, and the board.

An employee includes a faked receipt in his expense claim, and the claim is signed by the employee's manager.

A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.

A vendor sends a duplicate invoice with a new invoice number, and the accounts payable system fails to detect the duplication.

An employee works with the IT manager to develop a program for identifying duplicate invoice payments.

Their understanding of auditing standards.

Previous experience working with the internal audit activity.

Their reporting line within the organization.

The nature of their regular duties and responsibilities.

Comprehensive supervisory and verification procedures.

A well-designed system of internal controls.

A culture of integrity and transparency.

Unique operating environments with varying complexity.

Act as an adviser to the committee responsible for reviewing violations of the code.

Review and adjudicate all violations of the code of conduct.

Lead the committee responsible for the oversight of the code.

Implement a system of procedures to inform all employees of the code.

Fraud open on the books.

Fraud hidden on the books.

Fraud off the books.

Fraud on the balance sheet.

An internal auditor evaluates the significant risks arising from a consulting engagement.

An internal auditor declares that he would have a conflict of interest in providing planned audit support.

An internal auditor has been given sufficient authority to access documents needed to make an appraisal of an issue.

An internal auditor uses technology-based audit techniques to ensure that all significant risks are identified.

Internal auditors shall perform their work with honesty, diligence, and responsibility.

Internal auditors shall perform their work in accordance with the Standards.

Internal auditors shall perform their work in accordance with the law and make disclosures expected by the law.

Internal auditors shall be prudent in the use of information acquired while performing their work.

Accepting a consulting request in the IT department without possessing the requisite experience.

Providing personal tax preparation services for a fee for several employees during the lunch hour.

Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.

Agreeing to reword an observation to avoid the client complaining directly to the auditor's supervisor.

Usage of IT system policy.

Risk management framework.

Acceptance of gifts policy.

Personal responsibility policy.

The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.

The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.

The auditor recommends improvements for all of the organization's procedures and practices.

The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.

Bank statements.

Customer confirmation letters.

Copies of sales invoices.

Copies of deposit slips.

An independent third party has assessed the organization's system of internal controls to be adequate and effective.

The chief audit executive reports both functionally and administratively to the CEO.

The internal audit charter is drafted properly and approved by the appropriate parties.

The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.