Certified Internal Auditor Quality Control & Assurance 2 — Questions and Answers
Question 1: According to the IIA Standards, who is responsible for maintaining a quality assurance and improvement program (QAIP) for the internal audit activity?
- The audit committee
- The chief audit executive (Correct answer)
- The external auditor
- The board of directors
Correct answer: The chief audit executive
Standard 1300 requires the chief audit executive to develop and maintain a QAIP that covers all aspects of the internal audit activity.
Question 2: Which element is NOT typically included in an internal audit quality assurance and improvement program?
- Ongoing monitoring
- Periodic self-assessments
- External assessments
- Approval of the annual audit plan (Correct answer)
Correct answer: Approval of the annual audit plan
Approval of the annual audit plan is a governance function, not a component of the QAIP; the QAIP consists of ongoing monitoring, self-assessments, and external assessments.
Question 3: A self-assessment with independent validation (SAIV) differs from a full external assessment primarily because:
- It is conducted entirely by internal staff without any external involvement
- An external reviewer validates the self-assessment work performed internally (Correct answer)
- It does not result in a conformance opinion
- It is performed less frequently than a full external assessment
Correct answer: An external reviewer validates the self-assessment work performed internally
In SAIV, the internal audit activity performs the self-assessment, and a qualified external reviewer validates the process and conclusions.
Question 4: How often must the internal audit activity obtain an external quality assessment at a minimum, per IIA Standards?
- Annually
- Every two years
- Every five years (Correct answer)
- Every ten years
Correct answer: Every five years
Standard 1312 requires external assessments to be conducted at least once every five years by a qualified, independent assessor or assessment team.
Question 5: When an external quality assessment reveals that the internal audit activity 'generally conforms' to the IIA Standards, this means:
- The activity fully complies with every standard without any exceptions
- The activity has a sound system with minor deviations that do not impair overall effectiveness (Correct answer)
- The activity has significant deficiencies requiring immediate remediation
- The activity conforms to local regulations but not international standards
Correct answer: The activity has a sound system with minor deviations that do not impair overall effectiveness
'Generally conforms' means the internal audit activity has a professional and effective system with only minor deviations that do not compromise the overall quality of the function.
Question 6: Ongoing monitoring of the quality of internal audit engagements is BEST achieved through:
- Annual surveys sent to auditees only
- Supervisory review of workpapers and engagement communications (Correct answer)
- Periodic benchmarking against other organizations' budgets
- External assessor spot-checks conducted quarterly
Correct answer: Supervisory review of workpapers and engagement communications
Supervisory review of workpapers and engagement communications during and after each engagement is the primary mechanism for ongoing quality monitoring.
Question 7: Which statement about communicating QAIP results is CORRECT per IIA Standards?
- Results must be reported only when significant deficiencies are found
- Results must be communicated to senior management and the board (Correct answer)
- Results are confidential and shared only within the internal audit activity
- Results must be published on the organization's public website
Correct answer: Results must be communicated to senior management and the board
Standard 1320 requires the chief audit executive to communicate the results of the QAIP to senior management and the board.
Certified Internal Auditor Quality Control & Assurance 2
According to the IIA Standards, who is responsible for maintaining a quality assurance and improvement program (QAIP) for the internal audit activity?