IIA IIA-CHAL-QISA PDF Dumps Format
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IIA IIA-CHAL-QISA Exam Syllabus Topics:
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IIA Qualified Info Systems Auditor CIA Challenge Exam Sample Questions (Q31-Q36):
NEW QUESTION # 31
According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?
- A. Results of ongoing monitoring of the internal audit activity's performance must be reported to senior management and the board at least annually
- B. The external assessor must present the findings from the external assessment to senior management and the board upon completion.
- C. Results of internal assessments need to be reported to the board at least once every five years.
- D. Deficiencies within the internal audit activity must be reported to the board as soon as they are noted
Answer: A
Explanation:
The IIA's International Standards for the Professional Practice of Internal Auditing (Standards) provide guidance on the reporting requirements of the quality assurance and improvement program. According to Standard 1320, "The chief audit executive must communicate the results of the quality assurance and improvement program to senior management and the board." This communication must include the results of both internal and external assessments and ongoing monitoring. Specifically, the results of ongoing monitoring of the internal audit activity's performance should be reported to senior management and the board at least annually. This ensures that the internal audit activity maintains its proficiency, enhances its effectiveness, and complies with the Standards.
NEW QUESTION # 32
Which of the following processes does the board manage to ensure adequate governance?
- A. Establish and measure performance objectives for the internal audit activity
- B. Select board members with necessary knowledge and skills.
- C. Develop strategies to mitigate the risks to achieving the organization's objectives
- D. Develop, approve, and execute the strategic plan of the organization
Answer: D
Explanation:
The board manages several key processes to ensure adequate governance within an organization, one of which is the development, approval, and execution of the strategic plan. This process is critical because it defines the organization's direction, goals, and the actions required to achieve these goals.
Strategic Planning: The board plays a pivotal role in setting the organization's strategic direction, which includes establishing long-term goals and defining the means to achieve them.
Performance Measurement: While the board may establish and measure performance objectives for the internal audit activity, this is part of a broader governance framework.
Risk Management: The board also develops strategies to mitigate risks, ensuring that the organization can achieve its objectives effectively.
NEW QUESTION # 33
Which of the following must be in existence as a precondition to developing an effective system of internal controls?
- A. An information and communication process
- B. A monitoring process
- C. A strategic objective-setting process.
- D. A risk assessment process.
Answer: D
Explanation:
* Risk Assessment Process: A risk assessment process is essential for identifying, analyzing, and managing risks that could prevent the achievement of objectives. It is a critical component in developing an effective system of internal controls.
* Importance: Without a risk assessment, organizations cannot effectively design controls that address relevant risks.
* COSO Framework: The Committee of Sponsoring Organizations (COSO) Internal Control Framework outlines risk assessment as a fundamental part of internal control systems.
* Components: The framework includes risk assessment, control activities, information and communication, monitoring activities, and the control environment.
* Other Preconditions:
* Monitoring Process: Important for evaluating the effectiveness of internal controls but not the initial step.
* Strategic Objective-Setting Process: Critical for overall organizational success but does not directly develop internal controls.
* Information and Communication Process: Supports internal controls by ensuring relevant information is communicated but follows the identification of risks.
NEW QUESTION # 34
Which of the following statements is true regarding corporate social responsibility (CSR)?
- A. Many of the areas explored by CSR are normally included in an audit universe or annual audit plan
- B. Despite significant corporate resources spent on CSR reporting, investors generally do not rely on CSR information.
- C. Typically, operating management does not have a major role to play based on the public nature of reporting
- D. Unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary.
Answer: D
Explanation:
* Introduction:
* Corporate Social Responsibility (CSR) involves companies taking responsibility for their impact on society and the environment beyond statutory obligations.
* Nature of CSR Reporting:
* CSR reporting is generally voluntary, although some regions and industries may have mandatory requirements.
* Options Analysis:
* Option A: Many CSR areas may overlap with the audit universe or annual audit plan, but not all.
* Option B: Investors may increasingly rely on CSR information, particularly in ESG (Environmental, Social, Governance) investing.
* Option C: CSR reporting is largely voluntary, unlike financial or regulatory reporting which is often mandatory.
* Option D: Operating management typically plays a significant role in CSR efforts and reporting.
* Conclusion:
* The correct statement regarding CSR is that it is largely voluntary, unlike many other areas of reporting responsibilities that impact stakeholders.
NEW QUESTION # 35
A control is designed to detect duplicate payments after transactions have been processed.
This control is classified as:
- A. Preventive.
- B. Directive.
- C. Detective.
- D. Corrective.
Answer: C
Explanation:
The control identifies issues after processing occurs, making it detective in nature.
NEW QUESTION # 36
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