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IIA Practice of Internal Auditing Sample Questions (Q239-Q244):

NEW QUESTION # 239
In which of the following populations would the internal auditor most likely choose to use a stratified sampling approach?

• A. Batches of materials that must be confirmed as meeting quality standards
• B. Inventory comprised of the same items stored in different warehouses
• C. Tax reports submitted to meet the requirements of the local taxation authority
• D. Revenue that is earned by an organization through cash receipts or as receivable.

Answer: D
NEW QUESTION # 240
According to the International Professional Practices Framework, which of the following would not be considered when performing an initial risk assessment in engagement planning?

• A. Management's process for monitoring, reporting, and resolving risk issues.
• B. The reliability of management's assessment of risk.
• C. Risks in related activities relevant to the activity under review.
• D. Management's methodology for defining risk criteria.

Answer: D
NEW QUESTION # 241
Prior to performing testing an internal auditor has determined that a primary process control failed due to design weakness. Which of the following actions should the auditor perform next?

• A. Confer with a second internal auditor to determine whether the control failure is legitimate issue a finding on this conclusion and report this finding to management of the business area
• B. Test the control anyway to determine the likelihood that the control was not performed property, and discuss this matter with management of the business area to determine which corrective action is needed
• C. Determine whether there are any compensating controls in place to reduce the nsk to an acceptable level, and discuss this matter with management of the business area to determine which corrective action is needed
• D. Conclude that the process control environment is weak, issue a finding on this conclusion and report this finding to management of the business area

Answer: C
NEW QUESTION # 242
An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:
"A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted."
The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor's workpaper?

• A. Listing of the actual documents examined for each employee.
• B. Use of audit verification symbols to show that each file was examined.
• C. Justification for the sample size.
• D. Removal of the employee names to protect their confidentiality.

Answer: C
NEW QUESTION # 243
The chief audit executive (CAF) determined that the residual risk identified in an assurance engagement is acceptable. When should this be communicated to senior management?

• A. When the CAE reports the audit outcome to senior management.
• B. When the residual risk is identified before the engagement is complete.
• C. When management of the area under review has resolved and mitigated the residual risk
• D. Immediately, as residual risk should be communicated as soon as possible

Answer: D
NEW QUESTION # 244
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