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IIA Internal Audit Practitioner Sample Questions (Q36-Q41):

NEW QUESTION # 36
Information collected and documented in audit workpapers should be sufficient to:

A. Support engagement observations and be consistent with engagement objectives.
B. Allow the work to be repeated and achieve the same results that logically lead to the same conclusion.
C. Confirm that management has effectively implemented recommended actions to resolve all identified control weaknesses.

Answer: A

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Sufficient Documentation: Audit workpapers must support observations, conclusions, and recommendations made during the engagement and align with engagement objectives.

NEW QUESTION # 37
Which of the following consulting engagements leverages an internal auditor's risk and control knowledge to help the organization keep abreast of emerging risks?

A. Advising on control designs
B. Facilitating organizational control self-assessments
C. Assisting with the development of policies and procedures

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Facilitating Organizational Control Self-Assessments (CSA): This engagement helps the organization identify, evaluate, and monitor risks and controls. By facilitating CSAs, internal auditors use their expertise to highlight emerging risks and ensure that the organization proactively addresses them.

NEW QUESTION # 38
According to IIA guidance, which of the following are commonly standardized workpaper elements?

A. Workpapers should be supported by inclusion of original documentation
B. Workpapers should be completed in an electronic format only
C. Workpapers should include a uniform cross-referencing system

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Uniform Cross-Referencing System: A standardized cross-referencing system ensures consistency, facilitates review, and allows quick retrieval of supporting documents. This is a best practice widely recommended by the IIA in workpaper documentation.

NEW QUESTION # 39
What is the purpose of establishing engagement objectives during the planning phase of an internal audit?

A. To ensure that all auditors have a common understanding of the area being audited.
B. To ensure that the work performed by other internal or external assurance providers is considered during audit planning.
C. To ensure that audit procedures are designed to address the risks relevant to the area being audited.

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Reference to IIA Standards:
* Standard 2210 - Engagement Objectives: Internal auditors must establish objectives for each engagement to align with the organization's goals and address identified risks.
* Reasoning:
* Option Ais correct because engagement objectives focus on ensuring audit procedures target and mitigate identified risks effectively.
* Option B(common understanding) is important for team alignment but is secondary to risk- focused objectives.
* Option C(considering work of other assurance providers) is part of planning but not the primary purpose of setting objectives.
* Importance of Objectives:
* Engagement objectives drive the audit's focus, ensuring that procedures are purposeful and tailored to mitigate relevant risks.

NEW QUESTION # 40
Which of the following statements is true regarding engagement status meetings?

A. They mainly involve one-way communication from the internal auditor to management of the area under review.
B. They should involve the chief audit executive and senior management.
C. They are expected to enhance the relationships between the internal audit activity and management of the area under review.

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Enhancing Relationships: Status meetings facilitate two-way communication, keeping management informed about audit progress and fostering collaboration. Open discussions during these meetings help address concerns and strengthen the relationship between internal audit and management.

NEW QUESTION # 41
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