Free IIA IAA-IAP Exam Dumps Questions & Answers

Which of the following conditions involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?

• A.  The CAE reports directly to the controller for the organization, and the internal audit activity resides in the office of the comptroller.
• B.  The CAE has direct access to records, personnel, and physical properties throughout the organization.
• C.  The CAE regularly attends and participates in critical executive management meetings for the organization.

Which of the following would be considered out of scope for a purchasing process audit engagement?

• A.  Authorization of requisitions
• B.  Matching goods received to requisitions
• C.  Control of goods

During engagement planning, which of the following sources would provide the internal auditor with relevant information to obtain an understanding of the process under review?

• A.  Mission, strategic objectives, and key performance indicators of the process under review, based on documented plans, policies, procedures, and discussions with management
• B.  The internal audit activity's annual audit plan and discussions that led to its development
• C.  Final report from an external financial audit of the process under review, which includes the status of management's corrective action plans

An internal auditor wants to establish the reasonableness of the current period's total payroll costs for the finance department. She divides the actual monthly payroll cost by the number of employees to derive an average cost per employee. Which of the following comparisons to this average cost would be considered trend analysis?

• A.  The mean of all actual salary amounts.
• B.  Budgeted information of another organization in the same industry.
• C.  Similar data for the department from two prior periods.

Which of the following would best support the overall risk assessment?

• A.  Detailed organizational charts to understand roles and reporting lines in the area under review.
• B.  Process narratives and process maps with descriptions of risks and controls.
• C.  Policies and process procedures provided by the manager of the process under review.