IIA-CHAL-QISA

IIA-CHAL-QISA practice questions, page 4 of 6, with answer review and explanations.

Question 16

During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor’s compensation. Which of the following would encourage the internal auditor to be objective in his work?

  1. Periodic reinforcement of the internal audit activity’s code of ethics disclosure practices.
  2. External assessments of the internal audit activity every five years.
  3. Audit committee review of every engagement report at the conclusion of the audit.
  4. Internal audit charter approved by the board.

Question 17

Which of the following is an example of an entity-level control pertaining to the finance area of an organization?

  1. Key account reconciliation, such as bank reconciliation.
  2. Segregation of duties between posting and reviewing journal entries.
  3. A signing authority matrix for spending approvals.
  4. The establishment of a finance and audit committee.

Question 18

An internal auditor was completely honest with operational management when delivering unfavorable audit results. Which of the following best describes the IIA Code of Ethics principle that the auditor demonstrated?

  1. Integrity.
  2. Objectivity.
  3. Competency.
  4. Transparency.

Question 19

An internal audit activity is planning its first audit of IT shared services. Which of the following controls would typically be evaluated first?

  1. Entity-level controls.
  2. Application controls.
  3. General controls.
  4. Transaction controls.

Question 20

Which of the following best describes the board’s role in establishing effective organizational governance?

  1. The board is involved in approving operational policy.
  2. The board monitors key processes and procedures.
  3. The board has oversight responsibility for organizational resources.
  4. The board approves management’s detailed plans and objectives.