IIA-CHAL-QISA

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

Question 26

Which of the following is an example of a risk reduction strategy?

  1. Outsourcing the payroll function.
  2. Absorbing the cost of losses.
  3. Insuring fixed assets.
  4. Installing cameras around the plant.

Question 27

Which of the following is most likely the subject of a periodic report from the chief audit executive to the board?

  1. A complete, accurate, and comprehensive account of engagement observations and recommendations.
  2. Oversight of the coordination between the internal audit activity and independent outside auditors.
  3. The internal audit activity's purpose, authority, responsibility, and performance relative to plan.
  4. Management’s assertions regarding the system of internal controls.

Question 28

Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

  1. Appoint the chief audit executive as a member of the board.
  2. Adopt written policies and procedures for the internal audit activity, approved by the board.
  3. Ensure the chief audit executive reports administratively to the audit committee.
  4. Establish the internal audit activity’s position within the organization in an audit charter.

Question 29

Which of the following is the first step in the process of identifying relevant fraud risk factors?

  1. Identifying preventive and detective controls.
  2. Gathering information about the organization's business activities to gain an understanding of fraud risks.
  3. Engaging in strategic reasoning to anticipate the fraud scheme.
  4. The use of brainstorming, management interviews, analytical procedures, and review of prior frauds.

Question 30

Which of the following is likely to result from greater centralization of an organization’s activities?

  1. A greater number of important decisions will be made at lower levels in the organization’s hierarchy.
  2. A lower number of important decisions will be made at lower levels in the organization’s hierarchy.
  3. A greater number of the organization’s departments will rely on low-level decision making.
  4. Top management will conduct fewer checks on lower-level decision making.