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IIA Practice of Internal Auditing Sample Questions (Q53-Q58):

NEW QUESTION # 53
Ordinarily, which of the following would not be an objective of an internal audit quality assurance review?

• A. Ensuring that the internal audit activity meets the external auditor's expectations.
• B. Complying with specific standards for the professional practice of internal auditing.
• C. Ensuring that the internal audit activity has an audit charter approved by the board of directors.
• D. Ensuring the adequacy of the goals, mission and vision of the internal audit activity.

Answer: A
NEW QUESTION # 54
An organization has an opening for an entry-level internal audit position. When interviewing for the position, which of the following is the least important skill for an entry-level internal auditor?

• A. Conflict resolution skills.
• B. Interpersonal skills.
• C. Time management skills.
• D. Communication skills.

Answer: A
NEW QUESTION # 55
During an audit of a major metropolitan museum, an auditor was unable to locate selected items from the museum's collection. The director of the museum informed the auditor that the upcoming replacement of the museum's inventory tracking system would address the auditor's concerns. What follow-up activity should the auditor propose?

• A. Monitor the system implementation and schedule a follow-up review once the new system is in place.
• B. Schedule an audit of the museum's security systems to determine if theft is a problem.
• C. Receive periodic feedback from museum staff regarding the status of the system implementation.
• D. Determine whether the items are indeed missing and assess the ability of the new system to remedy the problem.

Answer: D
NEW QUESTION # 56
Which of the following might alert an auditor to the possibility of fraud in a division?
I. The division is not scheduled for an external audit this year.
II. Sales have increased by 10 percent.
III. A significant portion of management's compensation is directly tied to reported net income of the division.

• A. I and II only
• B. I only
• C. III only
• D. I, II, and III

Answer: C
NEW QUESTION # 57
A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion?
I. Verify that the contractor has not charged change orders with costs that have already been billed to the original contract.
II. Determine if the contractor has billed for original contract work that was canceled as a result of change orders.
III.
Verify that the change orders were properly approved by management.

• A. I and II only
• B. III only
• C. I only
• D. I and III only

Answer: A
NEW QUESTION # 58
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