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IIA-ACCA – ACCA CIA Challenge Exam

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Showing 7–9 of 20 questions

Question 7 (Essentials of Internal Auditing)

Which of the following combinations of conditions is most likely a red flag for fraud?

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    The practice of surprise audits and the implementation of an employee support program.

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    Hiring an employee with a prior fraud conviction and yearly management review.

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    Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

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    A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.


Question 8 (Essentials of Internal Auditing)

Upon joining the internal audit activity, each new auditor receives a copy of the audit handbook. Which of the following handbook policies has the greatest risk of compromising audit objectivity?

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    Internal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related, and the remainder may be operations-related.

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    Internal auditors should rotate to other areas of the organization for nonaudit assignments to gain an understanding of the organization's operations.

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    Internal auditors should have direct and unrestricted access to personnel and information throughout the organization and the governing board.

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    Internal auditors should undergo annual performance appraisals conducted by the chief audit executive, who reports administratively to the chief financial officer.

Question 9 (Practice of Internal Auditing)

An internal auditor is conducting an assessment of the purchasing department. She has worked the full amount of hours budgeted for the engagement; however, the audit objectives are not yet complete. According to IIA guidance, which of the following are appropriate options available to the chief audit executive?

1. Allow the auditor to decide whether to extend the audit engagement.

2. Determine whether the work already completed is sufficient to conclude theengagement.

3. Provide the auditor feedback on areas of improvement for future engagements.

4. Provide the auditor with instructions and directions to complete the audit.

Select an option, then click Submit answer.

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    1, 2, and 3

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    1, 2, and 4

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    1, 3, and 4

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    2, 3, and 4