Downloadable IAA-IAP PDF | Updated IAA-IAP CBT
Downloadable IAA-IAP PDF | Updated IAA-IAP CBT
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IIA Internal Audit Practitioner Sample Questions (Q22-Q27):
NEW QUESTION # 22
During which stage of an audit engagement would the engagement supervisor identify the tasks that were already completed and the remaining tasks to be performed?
- A. When developing the test approach.
- B. When allocating resources.
- C. When documenting the work program.
Answer: C
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
The engagement supervisor identifies tasks that are completed and remaining tasks during the process of documenting the work program.
* Reference to IIA Standards:
* According to theIIA's Performance Standards 2200 - Engagement Planning, an internal audit work program should detail the procedures necessary to achieve the engagement's objectives.
* Standard2240 - Engagement Work Programexplicitly states that internal auditors must develop and document work programs that achieve the objectives of the engagement.
* Key Responsibilities:
* Documenting the work program involves listing tasks already performed to avoid redundancy and tasks remaining to ensure coverage of all planned activities.
* Supervisors are responsible for overseeing this process and ensuring the work aligns with the overall engagement plan.
* Relevance to Audit Practice:
* The work program serves as a roadmap for auditors, detailing specific steps to be taken.
* Identifying completed and pending tasks ensures proper time management and resource allocation during the engagement.
NEW QUESTION # 23
The engagement supervisor is coordinating an audit of investments and needs to select an audit team member to determine the test attributes. Which of the following team members is most appropriate for the engagement supervisor to select?
- A. An auditor with strong leadership skills who has experience leading projects for the IT auditdepartment.
- B. An auditor who has investment audit experience from a previous organization, but who has never performed investment audits at the current organization.
- C. An auditor who transferred from the investment department six months prior and has expert knowledge of investments.
Answer: C
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Reference to IIA Standards:
* Standard 1210 - Proficiency: Internal auditors must possess the necessary knowledge, skills, and competencies to conduct audits effectively.
* The auditor should have the relevant expertise to evaluate investment-related test attributes.
* Reasoning:
* Option Ais correct because the auditor has direct knowledge and expertise in investments, making them the most qualified to determine the relevant test attributes for the audit.
* Option B(IT audit experience) does not align with the specific skills required for investment auditing.
* Option C(previous experience) may offer some advantage, but the lack of familiarity with the current organization's processes limits the auditor's effectiveness.
* Importance of Expertise:
* Selecting an auditor with relevant experience and proficiency ensures that the audit will be conducted with accuracy and that the proper test attributes will be identified.
NEW QUESTION # 24
Which of the following best describes an audit engagement in which the objective is to appraise the economy of an oil shale mining process and the degree to which yearly production targets are being achieved?
- A. Operational
- B. Business process improvement
- C. Due diligence
Answer: A
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Operational Audit: This type of audit focuses on evaluating the efficiency, effectiveness, and economy of operations, such as the mining process and production targets in this case.
NEW QUESTION # 25
Which of the following is an example of a detective control?
- A. Required authorizations.
- B. Reconciliations.
- C. Segregation of duties.
Answer: B
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Definition of Detective Controls:
* Detective controls are designed to identify errors, irregularities, or fraudulent activities after they occur, enabling corrective action.
* Reasoning:
* Option Bis correct because reconciliations compare records (e.g., bank statements against ledgers) to detect discrepancies.
* Option A(segregation of duties) andOption C(required authorizations) are preventive controls designed to stop errors or fraud before they occur.
* Role of Detective Controls:
* Detective controls play a critical role in monitoring and identifying issues, supporting the overall control environment.
NEW QUESTION # 26
According to IIA guidance, which of the following are commonly standardized workpaper elements?
- A. Workpapers should include a uniform cross-referencing system
- B. Workpapers should be supported by inclusion of original documentation
- C. Workpapers should be completed in an electronic format only
Answer: A
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Uniform Cross-Referencing System: A standardized cross-referencing system ensures consistency, facilitates review, and allows quick retrieval of supporting documents. This is a best practice widely recommended by the IIA in workpaper documentation.
NEW QUESTION # 27
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