VALID IAA-IAP EXAM BOOTCAMP & FLEXIBLE IAA-IAP LEARNING MODE

Valid IAA-IAP Exam Bootcamp & Flexible IAA-IAP Learning Mode

Valid IAA-IAP Exam Bootcamp & Flexible IAA-IAP Learning Mode

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IIA Internal Audit Practitioner Sample Questions (Q78-Q83):

NEW QUESTION # 78
Which of the following situations is most likely to require a compliance engagement from the internal audit activity?

  • A. An organization must restate its financial statements due to an error in fixed asset valuation.
  • B. An organization is subject to newly imposed industry health and safety regulations.
  • C. An organization is preparing to launch an enhanced service for its online customer information system.

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Reference to IIA Standards:
* Standard 2130 - Governance: Internal audit must assess compliance with applicable laws, regulations, and industry standards.
* Compliance Auditing: These engagements assess whether the organization adheres to specific rules and regulations.
* Reasoning:
* Option Cinvolves newly imposed health and safety regulations, making compliance auditing critical to ensure the organization avoids penalties or operational disruptions.
* Option Apertains to financial reporting, typically addressed in assurance or financial audits.
* Option Binvolves a new service launch, which may require consulting or operational audits but not necessarily compliance-focused.


NEW QUESTION # 79
Which of the following scenarios would be the strongest indicator of fraud in an accounts payable process?

  • A. The address on one of the vendor invoices matches an employee's residential address.
  • B. The accounts payable manager was unable to provide documentation relating to travel expenses on one of the samples selected.
  • C. The invoices submitted by one of the organization's vendors are more than six months old.

Answer: A

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Address Matches an Employee's Residence: This is a strong indicator of fraud, as it suggests the possibility of a fictitious vendor created to divert funds to the employee.


NEW QUESTION # 80
Which of the following statements is true regarding engagement status meetings?

  • A. They should involve the chief audit executive and senior management.
  • B. They are expected to enhance the relationships between the internal audit activity and management of the area under review.
  • C. They mainly involve one-way communication from the internal auditor to management of the area under review.

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Enhancing Relationships: Status meetings facilitate two-way communication, keeping management informed about audit progress and fostering collaboration. Open discussions during these meetings help address concerns and strengthen the relationship between internal audit and management.


NEW QUESTION # 81
Which of the following would be the best indicator that the organization's risk management processes are operating effectively?

  • A. The organization implemented formal operational risk management processes.
  • B. Management established policies and procedures that state risk will be considered.
  • C. Management openly discusses both risks and opportunities facing the organization.

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Open Discussions of Risks and Opportunities: The best indicator of effective risk management is a culture where management actively identifies, evaluates, and discusses risks and opportunities, integrating them into decision-making processes.


NEW QUESTION # 82
Which of the following would be a common benefit of using generalized audit software?

  • A. It eliminates the need to obtain access privileges to relevant and reliable data.
  • B. It enables internal auditors to perform tests on data with the assistance of the organization's IT personnel.
  • C. It enables internal auditors to analyze very large quantities of data.

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Analyzing Large Data Sets: Generalized audit software (GAS) like ACL or IDEA allows auditors to process and analyze large volumes of data efficiently, identifying patterns, anomalies, and exceptions.


NEW QUESTION # 83
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