Free IIA IIA-CHAL-QISA Practice Questions 2026 - Page 5

An internal auditor observed that sales staff are able to modify or cancel an order in the system prior to shipping She wonders whether they can also modify orders after shipping. Which of the following types of controls should she examine?

A. Batch controls.

B. Application controls

C. General IT controls.

D. Logical access controls

Organizations that adopt just-in-time purchasing systems often experience which of the following?

A. A slight increase in carrying costs.

B. A greater need for inspection of goods as the goods arrive

C. A greater need for linkage with a vendors computerized order entry system.

D. An Increase in the number of suitable suppliers

A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days What conditions would an auditor look for as an Indicator of employee theft of food from a specific store?

A. On a rainy day. total sales are greater than expected when compared to the cost of ingredients used

B. On a sunny day. total sales are less than expected when compared to the cost of ingredients used.

C. Both total sales and cost of ingredients used are greater than expected.

D. Both total sales and cost of ingredients used are less than expected.

Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?

A. An independent third party has assessed the organization's system of internal controls to be adequate and effective.

B. The chief audit executive reports both functionally and administratively to the CEO

C. The internal audit charter is drafted properly and approved by the appropriate parties.

D. The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives

Which of the following is most likely to be considered a control weakness?

A. Vendor invoice payment requests are accompanied by a purchase order and receiving report.

B. Purchase orders are typed by the purchasing department using prenumbered forms

C. Buyers promptly update the official vendor listing as new supplier sources become known.

D. Department managers initiate purchase requests that must be approved by the plant superintendent

Which of the following could increase risks to the organization’s control environment?

A. Strong board of directors oversight.

B. Incentive-based compensation structures

C. Lower than average employee turnover.

D. Implementation of a fraud hotline

Which of the following is an advantage of utilizing an external fraud specialist in a suspected fraud investigation?

A. increased access to the organization's employees.

B. Increased ability to preserve evidence and the chain of command.

C. Increased ability to scrutinize the organization's key business processes.

D. increased access to the organization's software and proprietary data.

If the skills and competencies are not present within the internal audit activity to complete an ad-hoc assurance engagement, which of the following is an acceptable resolution?

A. Politely decline the engagement due to a lack of qualified staff available at the time.

B. Complete the engagement as requested, with the best of the current staff’s abilities.

C. Consider using employees from other departments in the organization on the audit team.

D. Change the scope of the testing to ensure that only available staff proficiencies are used

Which of the following statements is true regarding the reporting of tangible and intangible assets?

A. For plant assets, cost includes the purchase price and the cost of design and construction

B. For intangible assets, cost includes the purchase price and development costs.

C. Due to their indefinite nature, intangible assets are not subject to amortization.

D. The organization must expense any cost incurred in developing a plant asset

According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity? 1.Consult on CSR program design and implementation 2.Serve as an advisor on CSR governance and risk management. 3.Review third parties for contractual compliance with CSR terms 4Identify and mitigate risks to help meet the CSR program objectives

A. 1,2, and 3.

B. 1.2. and 4.

C. 1, 3, and 4.

D. 2. 3. and 4.