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IIA Practice of Internal Auditing Sample Questions (Q119-Q124):

NEW QUESTION # 119
Which of the following statements describes an engagement planning best practice?

A. It is best to determine planning activities on a case-by-case basis because they can vary widely from engagement to engagement.
B. If the engagement subject matter is not unique, it is not necessary to outline specific testing procedures during the planning phase.
C. Engagement planning activities include setting engagement objectives that align with audit client's business objectives.
D. The engagement plan includes the expected distribution of the audit results, which should be kept confidential until the audit report is final.

Answer: C

Explanation:
Best practices for engagement planning involve setting objectives that align with the business objectives of the audit client. This ensures that the audit is relevant and provides valuable insights to the organization. Planning should also be systematic and documented, ensuring that specific testing procedures and expected outcomes are outlined and communicated. Reference: = IIA Standard 2200 - Engagement Planning and IIA Practice Guide: "Planning the Engagement".

NEW QUESTION # 120
Senior management of an organization has requested that the internal audit activity provide ongoing internal control training for all managerial personnel. This is best addressed by:

A. An informal consulting engagement.
B. A formal consulting engagement.
C. A performance assurance engagement.
D. An operational assurance engagement.

Answer: B

NEW QUESTION # 121
Which of the following would present the most critical external risk to an organization?

A. Regulators announce broad legislative reforms applicable to the industry within which the organization operates
B. After minimal testing, the organization implements a new system to replace a legacy system
C. The organization experiences a merger, and the management team is reorganized and redistributed globally
D. The organization launches a product into new global markets

Answer: A

NEW QUESTION # 122
During the quarterly review of the internal audit activity's performance, the chief audit executive (CAE) notes that actual engagement hours consistently exceed the budget. Which of the following strategies would most likely help the CAE address this problem?
The budget should consider time spent on similar engagements.
The budget should consider the proficiency of the assigned auditors.
The budget estimate should provide for unexpected delays.
The budget should be specific as to time for each work assignment.

A. 1 and 4 only
B. 3 and 4 only
C. 2 and 3 only
D. 1 and 2 only

Answer: A

Explanation:
Topic 5, Volume E

NEW QUESTION # 123
A chief audit executive is preparing interview questions for the upcoming recruitment of a senior internal auditor. According to IIA guidance, which of the following attributes shows a candidate's ability to probe further when reviewing incidents that have the appearance of misbehavior?

A. Integrity.
B. Flexibility.
C. Curiosity.
D. Initiative.

Answer: C

Explanation:
According to IIA guidance, curiosity is a key attribute that indicates a candidate's ability to probe further when reviewing incidents that have the appearance of misbehavior. Curiosity drives the auditor to ask deeper questions, seek out underlying causes, and thoroughly investigate anomalies. While integrity (Option A), flexibility (Option B), and initiative (Option C) are important qualities for an internal auditor, curiosity specifically relates to the propensity to investigate and uncover the truth behind incidents.
Reference:
IIA Standard 1200: Proficiency and Due Professional Care.
IIA Practice Guide on Competency Framework for Internal Auditing.

NEW QUESTION # 124
......

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IIA Practice of Internal Auditing Sample Questions (Q119-Q124):

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