Free IIA IIA-ACCA Practice Exam with Questions & Answers | Set: 3

Name: How to Pass IIA-ACCA Exams
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Questions 31

A large investment organization hired a chief risk officer (CRO) to be responsible for the organization's risk management processes. Which of the following people should prioritize risks to be used for the audit plan?

Options:

Operational management, because they are responsible for the day-to-day management of the operational risks.

The CRO, because he is responsible for coordinating and project managing risk activities based on his specialized skills and knowledge.

The chief audit executive, although he is not accountable for risk management in the organization.

The CEO, because he has ultimate responsibility for ensuring that risks are managed within the agreed tolerance limits set by the board.

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22-Jun-2025

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Questions 32

After finalizing an assurance engagement concerning safety operations in the oil mining process, the audit team concluded that no key controls were compromised. However, some opportunities for improvement were noted. Which of the following would be the most appropriate way for the chief audit executive (CAE) to report these results?

Options:

The CAE should send the final report to operational and senior management and the audit committee.

The CAE should send the final report to operational management only, as there is no need to communicate this information to higher levels.

The CAE should notify operational and senior management that the audit engagement was completed with no significant findings to report.

The CAE should send the final report to operational management and notify senior management and the audit committee that no significant findings were identified.

Questions 33

Which of the following is an appropriate role for the internal audit activity with regard to the organization's risk management program?

Options:

Identify and manage risks in line with the organization's risk appetite.

Ensure that a proper and effective risk management process exists.

Attain an adequate understanding of the organization's key risk mitigation strategies.

Identify and ensure that appropriate controls exist to mitigate risks.

Questions 34

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

Options:

The employee’s name listed on organization’s payroll is compared to the personnel records.

Payroll time sheets are reviewed and approved by the timekeeper before processing.

Employee access to the payroll database is deactivated immediately upon termination.

Changes to payroll are validated by the personnel department before being processed.

Questions 35

During an assurance engagement, an internal auditor noted that the time staff spent accessing customer information in large Excel spreadsheets could be reduced significantly through the use of macros. The auditor would like to train staff on how to use the macros. Which of the following is the most appropriate course of action for the internal auditor to take?

Options:

The auditor must not perform the training, because any task to improve the business process could impact audit independence.

The auditor must create a new, separate consulting engagement with the business process owner prior to performing the improvement task.

The auditor should get permission to extend the current engagement, and with the process owner's approval, perform the improvement task.

The auditor may proceed with the improvement task without obtaining formal approval, because the task is voluntary and not time-intensive.

Questions 36

An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments. To follow up, which of the following is the most appropriate action for the internal auditor to take?

Options:

Observe corrective measures.

Seek a management assurance declaration.

Follow up during the next scheduled audit.

Conduct appropriate testing to verify management responses.

Questions 37

When creating the internal audit plan, the chief audit executive should prioritize engagements based primarily on which of the following?

Options:

The last available risk assessment.

Requests from senior management and the board.

The longest interval since the last examination of each audit universe item.

The auditable areas required by regulatory agencies.

Questions 38

Which of the following statements describes an engagement planning best practice?

Options:

It is best to determine planning activities on a case-by-case basis because they can vary widely from engagement to engagement.

If the engagement subject matter is not unique, it is not necessary to outline specific testing procedures during the planning phase.

The engagement plan includes the expected distribution of the audit results, which should be kept confidential until the audit report is final.

Engagement planning activities include setting engagement objectives that align with audit client's business objectives.

Questions 39

Which of the following is not a direct benefit of control self-assessment (CSA)?

Options:

CSA allows management to have input into the audit plan.

CSA allows process owners to identify, evaluate, and recommend improving control deficiencies.

CSA can improve the control environment.

CSA increases control consciousness.

Questions 40

A chief audit executive (CAE) is determining which engagements to include on the annual audit plan. She would like to consider the organization's attitude toward risk and the degree of difficulty in achieving objectives. Which of the following resources should the CAE consult?

Options:

The corporate risk register.

The strategic plan.

Internal and external audit reports.

The board's meeting records.

Questions 41

Which of the following is not a primary reason for outsourcing a portion of the internal audit activity?

Options:

To gain access to a wider variety of skills, competencies and best practices.

To complement existing expertise with a required skill and competency for a particular audit engagement.

To focus on and strengthen core audit competencies.

To provide the organization with appropriate contingency planning for the internal audit function.

Questions 42

Which of the following is an effective approach for internal auditors to take to improve collaboration with audit clients during an engagement?

1. Obtain control concerns from the client before the audit begins so the internal auditor can tailor the scope accordingly.

2. Discuss the engagement plan with the client so the client can understand the reasoning behind the approach.

3. Review test criteria and procedures where the client expresses concerns about the type of tests to be conducted.

4. Provide all observations at the end of the audit to ensure the client is in agreement with the facts before publishing the report.

Options:

1 and 2 only

1 and 4 only

2 and 3 only

3 and 4 only

Questions 43

According to the Standards, which of the following is leastimportant in determining the adequacy of an annual audit plan?

Options:

Sufficiency.

Appropriateness.

Effective deployment.

Cost effectiveness.

Questions 44

Which of the following actions are appropriate for the chief audit executive to perform when identifying audit resource requirements?

1. Consider employees from other operational areas as audit resources, to provide additional audit coverage in the organization.

2. Approach an external service provider to conduct internal audits on certain areas of the organization, due to a lack of skills in the organization.

3. Suggest to the audit committee that an audit of technology be deferred until staff can be trained, due to limited IT audit skills among the audit staff.

4. Communicate to senior management a summary report on the status and adequacy of audit resources.

Options:

1 and 3 only

2 and 4 only

1, 2, and 4

2, 3, and 4

Questions 45

Which of the following factors should a chief audit executive consider when determining the audit universe?

1. Components of the organization's strategic plan.

2. Inputs from senior management and the board.

3. Views of competitors and business associates.

4. Results of exit interviews with departing employees.