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IIA Essentials of Internal Auditing Sample Questions (Q102-Q107):
NEW QUESTION # 102
During the planning phase of an audit, an internal auditor preliminarily concluded that the controls for a process were adequately designed to manage the associated risk. Under what conditions might this preliminary assessment subsequently prove to be unreliable?
- A. Entity level controls are informal and not consistently enforced.
- B. Redundant controls are not in place to enhance well designed controls.
- C. Compensating controls from other processes were not present.
- D. Process controls were not developed from an existing key control checklist.
Answer: A
NEW QUESTION # 103
Which of the following is a greater consideration for internal auditors when they are performing a consulting engagement than when they are performing an assurance engagement'?
- A. The needs and expectations of the engagement client
- B. The cost of the engagement relative to its benefits
- C. The relative complexity of the engagement
- D. The extent of work needed to achieve the engagement's objective
Answer: A
NEW QUESTION # 104
If an engagement client's operating standards are vague and thus subject to interpretation, the auditor should:
- A. Seek agreement with the client as to the standards to be used to measure operating performance.
- B. Omit any comments on standards and the client's performance in relationship to those standards, because such an analysis would be meaningless.
- C. Determine best practices in the area and use them as the standard.
- D. Interpret the standards in their strictest sense because standards are otherwise only minimum measures of acceptance.
Answer: A
NEW QUESTION # 105
Which of the following sources of evidence would be least persuasive regarding potential waste and inefficiency on the part of a contractor?
- A. A comparison of contract expenses with those of similar projects.
- B. An examination of the nature of contract expenses incurred.
- C. The contractor's certification that it has not incurred any waste or inefficiencies.
- D. A walk-through of the contractor's manufacturing and development facilities.
Answer: C
NEW QUESTION # 106
Which of the following data collection strategies systematically tests the effects of various factors on an outcome?
- A. Modeling.
- B. Sampling.
- C. Content analysis.
- D. Evaluation synthesis.
Answer: A
NEW QUESTION # 107
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