FREE Certified Internal Auditor (IIA) Questions and Answers
Which of the following methods achieves the independence of the internal audit activity, as per IIA guidance?
Explanation:
Practice Advisory 1110-1 states that organizational status and objectivity allow members of the internal audit activity to make the objective judgments necessary for the proper conduct of engagements.
Which of the following claims concerning statistical sampling is accurate in light of the distinctions between statistical and judgmental sampling?
Explanation:
A statistical sample is the only way to obtain measured reliability (expressed in confidence intervals).
Which of the following statements accurately summarizes the most crucial factor when deciding who is responsible for what obligations arise during an audit engagement?
Explanation:
The most important criterion when assigning responsibility for specific tasks required in an audit engagement is that all auditors appointed to an audit task must have the knowledge and skills to complete the job satisfactorily.
A chief audit officer should do the following to ensure that internal auditors' technical proficiency is appropriate for the audit engagements to be performed:
Explanation:
To ensure that the technical proficiency of internal auditors is appropriate for the audit engagements, a chief audit executive should consider the scope of work and level of responsibility when establishing criteria for education and experience in filling internal auditing positions.
A chief audit executive sends a note and questionnaire to the department's supervisors before conducting a preliminary survey. What outcome of that process is most likely?
Explanation:
The most likely result of sending a memorandum and questionnaire to the supervisors of the department to be audited in advance of a preliminary survey is that it involves the engagement client's supervisory personnel in the audit.
All sales prices are set centrally in a manufacturing organization and are electronically transmitted to the distribution centres to update their sales price tables. Any price changes must have central office approval. An internal auditor should: ascertain how this procedure is operating.
Explanation:
To determine how the process of determining sales prices is functioning in a manufacturing organization, an internal auditor should document the flow of sales price information and determine how the sales price table is accessed and updated.
Which tactics will minimize production pauses brought on by equipment maintenance and repair?
Explanation:
Equipment problems and failures will be reduced with a preventive maintenance program.