Free Qualified Info Systems Auditor CIA Challenge Exam IIA-CHAL-QISA Exam Practice Test

In the years after the mid-service point of a depreciable asset, which of the following depreciation methods will result in the highest depreciation expense?

• Sum of the years’ digits.
• Declining balance.
• Double-declining balance.
• Straight line.

Which of the following is applicable to both a job order cost system and a process cost system'?

• Total manufacturing costs are determined at the end of each period.
• Costs are summarized in a production cost report for each department
• Three manufacturing cost elements are tracked: direct materials, direct labor, and manufacturing overhead.
• The unit cost can be calculated by dividing the total manufacturing costs for the period by the units produced during the period.

According to IIA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?

• Developing policies and procedures for the internal audit activity
• Ensuring the internal audit activity is not found fallible during audit engagements.
• Undertaking all engagements that management requests of the internal audit activity.
• Ensuring the internal audit activity reports functionally to the board of directors

According to IIA guidance, which of the following statements is true regarding due professional care?

• Internal auditors must exercise due professional care to ensure that all significant risks will be identified.
• Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor.
• Due professional care requires the internal auditor to conduct extensive examinations and verifications to ensure fraud does not exist.
• Due professional care is displayed during a consulting engagement when the internal auditor focuses on potential benefits of the engagement rather than the cost

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

• increased access to the organization's employees.
• Increased ability to preserve evidence and the chain of command.
• Increased ability to scrutinize the organization's key business processes.
• increased access to the organization's software and proprietary data.

Which of the following best describes the internal audit activity's responsibility within a risk and control framework?

• The internal audit activity constitutes the first line of defense in effective risk management.
• The internal audit activity provides direction regarding internal controls implementation.
• The internal audit activity verifies that management has met its responsibility for implementing effective controls.
• The internal audit activity implements the internal control framework and advises management regarding best practices

Which of the following situations is most likely to heighten an internal auditors professional skepticism regarding potential fraud?

• A procurement manager does not have the expected academic credentials for his position
• A salesperson frequently complains about the organization's policy on sales commissions.
• The accounts payable supervisor has requested advances against her monthly salary on several occasions
• A financial accountant is absent from work frequently due to regular medical procedures

An internal auditor believes that the internal audit activity's independence is impaired Which of the following actions should the internal auditor take first?

• Report the impairment to senior management
• Discuss the impairment with the audit manager.
• Ascertain the best approach to disclose the impairment.
• Decide on the extent of impact of the impairment

Which of the following would most likely form part of the engagement scope?

• Potential legislation on privacy topics will be employed as a compliance target O Wire transfers that exceeded $10,000 in the last 12 months will be analyzed.
• Both random and judgmental samplings will be used during the engagement
• The probability of significant errors will be considered via risk assessment.

Which of the following statements best demonstrates application of due professional care during anassurance engagement?

• The engagement detected irregularities and noncompliance instances.
• The engagement supervisor had no significant comments in the supervisory review.
• The audit procedures were systematically planned: executed, and documented.
• The engagement objectives were designed to assist the engagement client