Certified Internal Auditor

FREE Certified Internal Auditor (IIA) Questions and Answers

Which tactics will minimize production pauses brought on by equipment maintenance and repair?

Plan maintenance activity based on an analysis of equipment repair work orders

Schedule production based on capacity planning

Establish a preventive maintenance program for all production equipment

Preauthorize equipment maintenance and overtime pay

Correct! Wrong!

Explanation:
Equipment problems and failures will be reduced with a preventive maintenance program.

Which of the following claims concerning statistical sampling is accurate in light of the distinctions between statistical and judgmental sampling?

A smaller sample can be used

There is no need for judgment because everything is calculated using a formula.

Population estimates can be made with measurable reliability

More accurate results are obtained

Correct! Wrong!

Explanation:
A statistical sample is the only way to obtain measured reliability (expressed in confidence intervals).

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?

It involves the engagement client's supervisory personnel in the audit

It makes the audit engagement seem uncertain.

It is only useful for audits of distant locations

It is an uneconomical approach to obtaining information

Correct! Wrong!

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.

Which of the following methods achieves the independence of the internal audit activity, as per IIA guidance?

Continuing professional development and due professional care

Staffing and supervision

Organizational status and objectivity

Human relations and communications

Correct! Wrong!

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.

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.

Create a flowchart of the sales order procedure to identify how orders are received and priced.

Document the flow of sales price information, and determine how the table is accessed and updated

Obtain a copy of the computer program's existing flowchart to understand how price data is obtained.

Determine who approves the items' transportation and the goods' pricing.

Correct! Wrong!

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 of the following statements accurately summarizes the most crucial factor when deciding who is responsible for what obligations arise during an audit engagement?

Each auditor assigned an audit task must possess the knowledge and abilities to accomplish the work

Assignments for auditors must be primarily based on their years of experience

All audit team members must be capable of doing any work that will be necessary during the audit engagement

The audit team member who is best qualified to complete a task must be given that task

Correct! Wrong!

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:

Ensure that each new auditor hired is proficient in all areas required to complete the department's audit mission

When determining the requirements for education and experience to fill internal auditing roles, consider the nature of the work and the level of responsibility

All members of the audit team should be required to complete a certain number of hours of CPE each year

Oversee a training program that combines individual auditors' interests with the training offered

Correct! Wrong!

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.

FREE Certified Internal Auditor (IIA) Questions and Answers

Which tactics will minimize production pauses brought on by equipment maintenance and repair?

Which of the following claims concerning statistical sampling is accurate in light of the distinctions between statistical and judgmental sampling?

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?

Which of the following methods achieves the independence of the internal audit activity, as per IIA guidance?

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.

Which of the following statements accurately summarizes the most crucial factor when deciding who is responsible for what obligations arise during an audit engagement?

A chief audit officer should do the following to ensure that internal auditors' technical proficiency is appropriate for the audit engagements to be performed:

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