IIA-CHAL-QISA: Qualified Info Systems Auditor CIA Challenge Engagement Practice Questions
The free IIA-CHAL-QISA: Qualified Info Systems Auditor CIA Challenge questions that deal with engagement, with answers and explanations. The full bank and the timed practice test cover every topic the exam asks about.
Question #3
According to IIA guidance, which of the following steps should precede the development of audit engagement objectives?
Correct answer: C
Explanation
• Risk Assessment: Before developing audit engagement objectives, a thorough risk assessment should be conducted. This step helps identify and prioritize the areas of highest risk, ensuring that the audit focuses on the most critical issues. • Establishing Objectives: The results of the risk assessment guide the development of specific, relevant, and focused audit objectives. This ensures that the engagement addresses key risk areas and adds value to the organization. • Sequential Steps: Identification of controls, scope establishment, and review of resources are important steps but typically follow the initial risk assessment to ensure the audit is aligned with the organization's risk profile. : IIA Standard 2200 - Engagement Planning.
Question #6
While conducting an engagement in the procurement department, the internal auditor noticed that the department head's travel reports showed minor travel expenses, and there were no charges for hotels, meals, or transportation However, the auditor knew that the department head frequently traveled worldwide to meet with suppliers and visit their production sites. Which of the following would be the most appropriate next step for the auditor?
Correct answer: C
Explanation
• Identifying the Anomaly:The internal auditor has identified a discrepancy in the travel expenses of the department head, who frequently travels yet reports minimal expenses. This raises a red flag that needs further investigation. • Understanding the Context:It is important to determine if there are legitimate reasons for the discrepancy, such as special arrangements made for senior management travel, which could explain the absence of typical travel expenses like hotels, meals, and transportation. • Appropriate Next Step:Investigating whether there are any special arrangements for senior management travel (Option C) is the most logical next step. This helps in understanding the context and validating whether the discrepancy is justified or indicative of potential issues such as fraud or misreporting. Reference:Internal auditing standards emphasize the need for auditors to understand the environment and context of the organization's operations when anomalies are detected. Other Options Considered: Option A:Making a note for future follow-up is not proactive and delays addressing a potential issue. Option B:Analyzing supplier trends, while useful, does not directly address the travel expense anomaly. Option D:Estimating costs based on destinations can provide insights but does not explain potential legitimate arrangements made by the organization. Conclusion:Investigating special arrangements regarding senior management travel (Option C) is the most appropriate step to understand the discrepancy and ensure there are no irregularities.
Question #9
Which of the following statements is true regarding engagement planning?
Correct answer: C
Explanation
Proper engagement planning is essential to ensure that the internal audit engagement is conducted effectively and efficiently. Completing and approving the planning phase before starting the fieldwork ensures that all objectives, scope, resources, and methodologies are well-defined and agreed upon. This preparation helps in aligning the engagement with the overall audit strategy and reduces the risk of scope changes or misalignments during fieldwork
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