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IQN QIA Qualified Internal Auditor Exam Practice Test

Demo: 12 questions
Total 80 questions

Qualified Internal Auditor Questions and Answers

Question 1

Which of the following is an example of intimidation threat to independence of the auditor?

Options:

A.

The audit firm has been involved in maintaining the accounting records, or undertaking valuations that are incorporated in the financial statements

B.

The audit firm is acting as a legal advocate for the client in litigation

C.

Xenia Taliotis is an influential finance director of Winner Plc

D.

The audit firm is working for long time for its client

Question 2

To identify shortages of specific items in an inventory of expensive goods held for retail sale, the most appropriate audit work step is to

Options:

A.

Apply the retail method of inventory valuation.

B.

Compare physical inventory counts to perpetual records.

C.

Develop inventory estimates based on the gross profit percentage method.

D.

Analyzecurrent and previous inventory turnover rates.

Question 3

In order for internal auditors to be able to recognize potential fraud, they must be aware of the basic characteristics of fraud. Which of the following is not a characteristic of fraud?

Options:

A.

Intentional deception.

B.

Taking unfair or dishonest advantage.

C.

Perpetration for the benefit or detriment of theorganization.

D.

Negligence on the part of executive management.

Question 4

During the audit of inventories, an internal auditor specified a precision of 5% instead of the 4% contained in the preliminary audit program.

What would be the impact of the change in precision?

Options:

A.

A decrease in population standard deviation.

B.

An increase in population standard deviation.

C.

A decrease in required sample size

D.

An increase in required sample size

Question 5

Which of the following documents would provide the most persuasive evidence concerning the existence and valuation of a receivable?

Options:

A.

A credit approval document supported by the customer's audited financial statements.

B.

A copy of a sales invoice to the customer in the auditee's records.

C.

A positive confirmation received directly from the customer.

D.

A customer's purchase order in the auditee's records related to the credit sale.

Question 6

Which of the following areas are addressed by attribute standards?

Options:

A.

Independence, objectivity, and nature of the work

B.

Independence, communication of findings, and the resolution of problems affecting the risks accepted by management

C.

Independence, objectivity and proficiency

D.

Engagement planning, engagement execution, and progress monitoring

Question 7

The auditor wants to understand the actual flow of data regarding cash processing. The most convincing evidence would be obtained by

Options:

A.

Reviewing the systems flowchart.

B.

Performing a "walk-through" of the processing and obtaining copies of all documents used.

C.

Reviewing the programming flowchart for evidence of control procedures placed into the computer programs.

D.

Interviewing the treasurer.

Question 8

The consultative approach to auditing emphasizes

Options:

A.

Imposition of corrective measures.

B.

Participation with auditees to improve methods.

C.

Fraud investigation.

D.

Implementation of policies and procedures.

Question 9

The primary concern in a program results audit is a determination that

Options:

A.

Financial statements are presented in accordance with International Financial Reporting Standards.

B.

Desired benefits are being achieved.

C.

The entity has complied with laws and regulations.

D.

Resources are managed economically and efficiently.

Question 10

An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division.

The use of an analytical review as a verification technique would not be a preferred approach if

Options:

A.

The auditor notes strong indicators of a specific fraud involving this account.

B.

The company has relatively stable operations that have not changed much over the past year.

C.

The auditor would like to identify large, unusual, or nonrecurring transactions during the year.

D.

The operating expenses vary in relation to other operating expenses, but not in relation to revenue.

Question 11

An organization uses a service bureau to process its hourly payroll transactions. The internal auditor is concerned that the hourly payroll for the year has been processed correctly and, in particular, the computation of employee withholding for pension contributions is in accordance with the union contract, which specifies charges each quarter.

Which of the following audit procedures would best accomplish the audit objective?

Options:

A.

Select a random sample of all hourly payroll transactions for the reporting period, re-compute pay and withholding items, and compare the result with that obtained from the service bureau.

B.

Select a stratified sample of all hourly and salaried payroll transactions for an entire reporting period, perform the necessary activities, and then compare the result with that obtained from the service bureau.

C.

Select a discovery sampling of all payroll transactions for an entire reporting period and then follow up on any findings.

D.

Submit a set of test data to the service bureau during an annual audit and compare the service bureau's processing with the auditor's predetermined computations on the same test data.

Question 12

How does CSA differ from traditional methods of auditing?

Options:

A.

Shifts some of the responsibilities away from the auditors towards others such as work teams.

B.

Allocated additional responsibilities to internal audit.

C.

Reduces the level of collaboration required between managers and internal auditor.

D.

Allows assessment to be carried out without any internal audit involvement whatsoever, therefore allowing them to focus their attention on other areas of theorganization.

Demo: 12 questions
Total 80 questions