IIA-CFSA

IIA-CFSA practice questions, page 8 of 21, with answer review and explanations.

Question 36

The major benefit of risk assessment is:

  1. To staff the plans and financial budgets
  2. To consider factor that may affect risk and giving the highest priority to audit areas that have the highest potential for adverse consequences
  3. To identify the possible adverse effects based solely on the type of activity, the type of resources, amount of assets or complexity of transactions
  4. Failure to achieve the organization’s goal and objectives

Question 37

The risk analysis process involves all of the following steps EXCEPT:

  1. Identifying auditable activities (e.g. programs, accounts, contracts, transactions)
  2. Identifying relevant risk factors (e.g. Complexity of programs, size of program, adequacy of internal control system)
  3. Prioritizing Risks
  4. Determine the need for external assistance of outsourcing

Question 38

Which of the following steps is/are NOT considered in the audit planning process?

  1. Identifying what is to be audited?
  2. Assess risk and vulnerability
  3. Determine how to manage the risks
  4. Develop specific issues and Questions for the audit

Question 39

Following is a list of background items auditors should review to determine their impact on audit objectives EXCEPT:

  1. The history of the program or entire organization
  2. Results of prior audits and their working papers
  3. Applicable laws, rules and regulations. Specific items usually set forth in laws and regulations include the following: What the program is supposed to do? Who is supposed to do it? How much can be spent on what?
  4. Audit methods, strategies, tests, analysis and comparisons

Question 40

Auditors can use background information to define and modify:

  1. Scope of the audit
  2. The likelihood that a risk will occur
  3. Activity reports
  4. Audit Criteria (Reasonable, attainable, and relevant)