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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 types of tests would be the most persuasive if an internal auditor wanted assurance of the existence of inventory stored in a warehouse?

Options:

A.

Examination of the shipping documents supporting recorded transfers to and from the warehouse.

B.

Obtaining written confirmation from management.

C.

Physically observing the inventory in the warehouse.

D.

Examination of warehouse receipts contained in the auditee's records.

Question 2

During an audit of sales representatives’ travel expenses, it was discovered that 152 of 200 travel advances issued to sales representatives in the past year exceeded the prescribed maximum amount allowed.

Which of the following statements is a justifiable audit opinion?

Options:

A.

The majority of travel advances in theorganizationexceed the prescribed maximum.

B.

Travel advances are not controlled in accordance with existing policy.

C.

The prescribed maximum travel advance is too low.

D.

76% of all travel advances exceed the management prescribed maximum.

Question 3

In addition to controls over access, processing, program changes, and other functions, a computerized system needs to establish an audit trail of information.

Which of the following information would generally not be included in an audit trail log designed to summaries unauthorized system access attempts?

Options:

A.

A list ofauthorizedusers.

B.

The type of event or transaction attempted.

C.

The terminal used to make the attempt.

D.

The data in the program sought.

Question 4

Experience has shown that certain conditions in an organization are symptoms of possible management fraud.

Which of the following conditions would not be considered as an indicator of possible fraud?

Options:

A.

Managers regularly assume subordinates' duties.

B.

Managers dealing in matters outside their profit centre’s scope.

C.

Managers not complying with corporate directives and procedures.

D.

Managers subject to formal performance reviews on a regular basis.

Question 5

Which of the following techniques is best for emphasizing a point in a written communication?

Options:

A.

Place the point in the middle rather than at the beginning or end of the paragraph.

B.

Use passive rather than active voice.

C.

Highlight the point through the use of nonparallel structure.

D.

Use a short sentence with one idea rather than a longer sentence with several ideas.

Question 6

Which of the following audit committee activities would be of the greatest benefit to the internal auditing department?

Options:

A.

Review and approval of auditprograms.

B.

Assurance that the external auditor will rely on the work of the internal auditing department whenever possible.

C.

Review and endorsement of all internal audit reports prior to their release.

D.

Support for appropriate follow-up of recommendations made by the internal auditing department.

Question 7

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 8

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 9

The following are potential sources of evidence regarding the effectiveness of the division's total quality management program. Assume that, all comparisons are for similar time periods and duration and current items are compared with similar items before the implementation of the total quality management program.

The least persuasive evidence would be a comparison of

Options:

A.

Employee morale over the two time periods.

B.

Scrap and rework costs over the two time periods.

C.

Customer returns over the two time periods.

D.

Manufacturing and distribution costs per unit over the two time periods.

Question 10

The internal audit activity evaluates and contributes to the improvement of risk management, control, and governance systems. Which of the following statements is associated with the improvement of governance?

Options:

A.

The internal audit activity should ascertain the extent to which operating and program goals and objectives have been established and conform to those of theorganization.

B.

The internal audit activity should review operations and programs to ensure consistency withorganizationalvalues.

C.

The internal audit activity should be free from interference in determining the scope of internal auditing, performing work, and communicating results.

D.

The internal audit activity should adopt a process to control and assess the overall effectiveness of the quality program.

Question 11

Which of the following is a particular activity of internal audit function?

Options:

A.

Special investigations, for instance, into suspected fraud

B.

Confirm that the final result (the sum) is correct

C.

To evaluate the system of internal control that are mainly concerned with the financial statements and accounting

D.

To give an opinion on overall fairness of the financial statements and accounting

Question 12

What evidence is appropriate to determine that recorded purchase transactions were valid and at the best price?

Options:

A.

Purchase requisitions, journal voucher entries, and bid quotes.

B.

Purchase requisitions, purchase orders, and bid quotes.

C.

Receiving reports, purchase orders, and purchase requisitions.

D.

Purchase orders, receiving reports, and bid quotes.

Demo: 12 questions
Total 80 questions