IIA IAA-IAP VALID DUMPS DEMO - IAA-IAP RELIABLE EXAM LABS

IIA IAA-IAP Valid Dumps Demo - IAA-IAP Reliable Exam Labs

IIA IAA-IAP Valid Dumps Demo - IAA-IAP Reliable Exam Labs

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IIA Internal Audit Practitioner Sample Questions (Q84-Q89):

NEW QUESTION # 84
Which of the following is the most important initial action for a chief audit executive to perform when establishing a new internal audit activity?

  • A. Approve the internal audit budget.
  • B. Establish a code of ethics for the internal audit activity.
  • C. Establish an internal audit charter.

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Reference to IIA Standards:
* Standard 1000 - Purpose, Authority, and Responsibility: The internal audit charter must define the purpose, authority, and responsibility of the internal audit activity and establish its position within the organization.
* The charter is foundational to the independence, authority, and effectiveness of the internal audit activity.
* Reasoning:
* Option Ais correct because the charter formalizes the internal audit activity's role and ensures alignment with organizational governance. Without a charter, the internal audit function cannot operate effectively or independently.
* Option B(establishing a code of ethics) is important but is part of overall compliance withIIA Standard 1300 - Quality Assurance and Improvement Programand is not the first step.
* Option C(approving the budget) is administrative and secondary to establishing the internal audit charter.
* Importance of the Audit Charter:
* The charter provides the internal audit activity with the mandate to perform its duties, ensuring accountability and defining its scope and authority.


NEW QUESTION # 85
If an internal auditor needs to evaluate compliance with an internal control policy, which sampling method is most appropriate?

  • A. Probability-proportional-to-size sampling
  • B. Attribute sampling
  • C. Difference estimation sampling

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Attribute Sampling: This method is used to evaluate compliance by determining the presence or absence of specific attributes (e.g., adherence to policies or procedures). It is most suitable for assessing yes/no questions or deviations in internal control testing.
* Example: Checking whether purchase orders are properly approved as per policy.


NEW QUESTION # 86
Which of the following would provide the most reliable information on a process under review?

  • A. Benchmarking information on the process under review compared to similar industries or organizational units
  • B. Documentation of a walkthrough conducted on the process under review
  • C. Testimonial evidence, such as survey responses, on the process under review

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Walkthrough Documentation: A walkthrough involves direct observation of the process and verification of controls, making it one of the most reliable sources of evidence.


NEW QUESTION # 87
In the absence of any action to control or modify the circumstances, the probability of loss arising from circumstances existing in an environment is known as which of the following types of risk?

  • A. Residual
  • B. Control
  • C. Inherent

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Inherent Risk: This is the risk that exists in an environment or process before any actions or controls are applied to mitigate it. It reflects the natural vulnerability of the process to errors or misstatements.


NEW QUESTION # 88
Which of the following consulting engagements leverages an internal auditor's risk and control knowledge to help the organization keep abreast of emerging risks?

  • A. Facilitating organizational control self-assessments
  • B. Assisting with the development of policies and procedures
  • C. Advising on control designs

Answer: A

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Facilitating Organizational Control Self-Assessments (CSA): This engagement helps the organization identify, evaluate, and monitor risks and controls. By facilitating CSAs, internal auditors use their expertise to highlight emerging risks and ensure that the organization proactively addresses them.


NEW QUESTION # 89
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