Which of the following would best support the overall risk assessment?

Process narratives and process maps with descriptions of risks and controls.

Policies and process procedures provided by the manager of the process under review.

Process narratives and process maps with descriptions of risks and controls.

Detailed organizational charts to understand roles and reporting lines in the area under review.

What are the typical elements of a risk and control matrix used in the engagement planning process?

Business objectives, risks to the objectives, and impact and likelihood of the risk occurring.

Experience level of key management personnel, susceptibility of the process to fraud, and process automation.

Inherent process risks, as defined in a globally accepted risk and control framework.

Business objectives, risks to the objectives, and impact and likelihood of the risk occurring.

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

The address on one of the vendor invoices matches an employee's residential address.

The accounts payable manager was unable to provide documentation relating to travel expenses on one of the samples selected.

The invoices submitted by one of the organization's vendors are more than six months old.

The address on one of the vendor invoices matches an employee's residential address.

A senior police officer was in charge of the cash fund used for undercover operations. In this situation, which of the following would likely be considered a red flag?

The officer appears to be living beyond his means.

The officer has no professional qualifications.

The officer appears to be living beyond his means.

The officer never speaks about the operations.

Information collected and documented in audit workpapers should be sufficient to:

Support engagement observations and be consistent with engagement objectives.

Confirm that management has effectively implemented recommended actions to resolve all identified control weaknesses.

Allow the work to be repeated and achieve the same results that logically lead to the same conclusion.

Support engagement observations and be consistent with engagement objectives.

During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization's total budget. Which of the following best supports the auditor's recommendation to reduce the level of reviews?

The cost of the control outweighs the benefit.

The inherent risk of travel expense fraud is low.

The cost of the control outweighs the benefit.

The duplication of effort in the review process is unnecessary.

An internal auditor wants to establish the reasonableness of the current period's total payroll costs for the finance department. She divides the actual monthly payroll cost by the number of employees to derive an average cost per employee. Which of the following comparisons to this average cost would be considered trend analysis?

Similar data for the department from two prior periods.

The mean of all actual salary amounts.

Similar data for the department from two prior periods.

Budgeted information of another organization in the same industry.

According to The IIA's Code of Ethics, which of the following best illustrates the principle of confidentiality?

The auditor refused to use information learned during an audit to diversify his financial portfolio.

The auditor declined to delegate critical audit lead responsibilities to a new auditor.

The auditor declined to lead an audit of a department in which his nephew is the manager.

A senior internal auditor is using a risk and control matrix to facilitate an internal control assessment of the fixed asset accounting process. Which of the following activities would aid the auditor in determining inputs for the risk and control matrix?

Interviews with fixed asset management, control process walkthroughs, and internal control questionnaires.

Reviewing the results of control effectiveness testing of the fixed asset capitalization subprocess.

Interviews with fixed asset management, control process walkthroughs, and internal control questionnaires.

Management's cost-benefit analysis of internal control alternatives considered in the design of the fixed asset accounting process.

Which of the following statements is true regarding root cause analysis?

Root cause analysis enables internal auditors to reveal multiple causes and recommend control enhancements for each cause identified.

Root cause analysis enables internal auditors to improve the effectiveness and efficiency of the organization's governance, risk management, and control processes.

Root cause analysis is a simple, straightforward tool that can be implemented by internal auditors who may not possess relevant subject matter expertise.

Root cause analysis enables internal auditors to reveal multiple causes and recommend control enhancements for each cause identified.

Which of the following conditions involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?

The CAE reports directly to the controller for the organization, and the internal audit activity resides in the office of the comptroller.

The CAE regularly attends and participates in critical executive management meetings for the organization.

The CAE has direct access to records, personnel, and physical properties throughout the organization.

The CAE reports directly to the controller for the organization, and the internal audit activity resides in the office of the comptroller.

Which of the following actions could the chief audit executive take to most directly support the requirement that internal auditors maintain proficiency?

Provide training and mentoring opportunities

Develop a risk-based internal audit plan

Provide training and mentoring opportunities

Obtain approval of the internal audit activity's purpose, authority, and responsibility

When determining the appropriate level of resources needed for an engagement, which of the following would be the first step?

Determine the sufficiency of internal audit staff

Identify required technology and audit tools

Determine travel and related costs for the engagement

The internal audit activity has been tasked with evaluating the effectiveness of the organization's risk management processes. Which of the following activities are appropriate and relevant to consider in the overall evaluation?

Evaluation of risk management effectiveness obtained during multiple audit engagements over the past year

The chief audit executive's observations of the organization's finance committee

An external audit of the organization's corporate social responsibility and sustainability management, including communication of findings to management and the board

Evaluation of risk management effectiveness obtained during multiple audit engagements over the past year

Based on the three elements of the Fraud Triangle, which of the following might be considered a fraud indicator related to the opportunity element?

Poor segregation of duties allows for an executive assistant to authorize payments to one-time vendors without supervisory approvals

Reserves were established based on conservative assumptions to maximize the amounts set aside for when operating results may not meet investors' expectations

Executive management establishes financial performance objectives for business unit managers. The objectives include significant increases in annual sales and market penetration

Poor segregation of duties allows for an executive assistant to authorize payments to one-time vendors without supervisory approvals

IIA IIA-IAP Practice Test 3 - Free Online Exam Prep & Questions

Spam

Selling illegal goods, money scams etc.

Hate Speech

Serious attack on a group.

Harassment and bullying

Harassing an individual (including doxing)

Harmful activities

Threatening or glorifying violence or serious harm, including self-harm

Adult content (Consensual)

Nudity/Sexual content

Sexual exploitation and abuse (child safety)

Sexually explicit or suggestive imagery or writing involving minors

Sexual exploitation and abuse (adults and animals)

Sexually explicit or suggestive imagery or writing involving non-consenting adults or non-humans

Plagiarism

Reusing content without attribution (link and blockquotes)

Poorly written

Not in English or has very bad formatting, grammar, and spelling

Inappropriate credential

Author's credential is offensive, spam, or impersonation

Other

Ex. Illegal content, incomplete question...

IIA IIA-IAP Practice Test 3

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