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IIA Practice of Internal Auditing Sample Questions (Q139-Q144):

NEW QUESTION # 139
According to IIA guidance, which of the following procedures would be least effective in managing the risk of payroll fraud?

A. Changes to payroll are validated by the personnel department before being processed.B. Employee access to the payroll database is deactivated immediately upon termination.C. The employee's name listed on organization's payroll is compared to the personnel records.D. Payroll time sheets are reviewed and approved by the timekeeper before processing.

Answer: D

NEW QUESTION # 140
According to the International Professional Practices Framework, which of the following situations is an indicator of a healthy relationship between the audit committee and the internal audit function?

A. Whenever a potential audit finding or testing exception is first identified, the audit committee is immediately notified, as well as for any subsequent changes in the status of the engagement.B. The CAE sends the audit committee all communications between the internal audit department and the audit client in order to keep the audit committee up to date on the engagement.C. The chief audit executive (CAE) has direct access to the audit committee and the board but typically does not interact directly with them unless a material weakness in the control environment is identified.D. The CAE does not distribute audit reports to the audit committee. However, the audit committee is made aware of the scope and findings of audits performed.

Answer: D

NEW QUESTION # 141
Which of the following is the most important concept to be included in a consulting engagement agreement?

A. Define the duties and responsibilities needed from management to perform the engagement.B. Disclose the fact that auditors who perform the work may not be subject matter experts in the topic of the review.C. Clarify that matters discovered during the engagement may also be reported to senior management and the audit committee.D. Disclose the fact that follow-up reviews may be conducted to ensure that recommendations are implemented adequately.

Answer: C

NEW QUESTION # 142
Which of the following actions is related to the preliminary survey process?

A. Identifying the current controls.B. Preparing the engagement work program.C. Completing a detailed test of controls.D. Determining if controls are effective.

Answer: A

Explanation:
Section: Volume C

NEW QUESTION # 143
Which of the following is the primary reason for internal auditors to conduct interim communications with management of the area under review?

A. To follow up on previously requested informationB. To demonstrate good project oversightC. To provide timely discussion of resultsD. To demonstrate internal auditor proficiency

Answer: A

NEW QUESTION # 144
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