IIA Commitment to Your IIA-CIA-Part2 Practice of Internal Auditing Exam Success

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IIA Practice of Internal Auditing Sample Questions (Q234-Q239):

NEW QUESTION # 234
The chief audit executive (CAE) of a small internal audit activity (IAA) plans to test conformance with the Standards through a quality assurance review. According to the Standards, which of the following are acceptable practice for this review?
1. Use an external service provider.
2. Conduct a self-assessment with independent validation.
3. Arrange for a review by qualified employees outside of the IAA.
4. Arrange for reciprocal peer review with another CAE.

Answer: B


NEW QUESTION # 235
An internal auditor s examination of accounts receivable generates the following results:

What is the projected misstatement for the population if ratio estimation is used?

Answer: B


NEW QUESTION # 236
During an audit, the chief audit executive reviews and approves changes to the audit program. Which of the following describes this activity?

Answer: C

Explanation:
Per Standard 2340 - Engagement Supervision, engagement supervision includes reviewing and approving work programs, changes, and results to ensure objectives are met and quality is maintained. This activity is part of supervision (C), not reporting (A), monitoring (B), or risk assessment (D).


NEW QUESTION # 237
Which of the following situations would justify the removal of a finding from the final audit report?

Answer: C

Explanation:
Section: Volume E


NEW QUESTION # 238
An organization buys crude oil on the open market and refines it into a high-quality gasoline. The price of crude oil is extremely volatile. Which of the following is the most appropriate risk management technique to protect the organization against these price fluctuations?

Answer: B

Explanation:
To manage the risk associated with volatile crude oil prices, purchasing crude oil-related derivatives such as futures or options is an appropriate risk management technique. These financial instruments allow the organization to hedge against price fluctuations by locking in prices or securing the right to purchase at a specific price, thereby providing financial stability and predictability. Option A is not directly related to hedging crude oil price risks. Option B involves speculative trading, which can be risky. Option D may not be feasible or cost-effective compared to using derivatives.
COSO's Enterprise Risk Management - Integrating with Strategy and Performance.
Top of Form


NEW QUESTION # 239
......

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