IAP - Practice Test Exam ACTUAL
QUESTIONS AND CORRECT ANSWERS
What is professional skipticism? - CORRECT ANSWER the state of mind in which IA
take nothing for granted; they continuously question what they hear and see and critically
assess audit evidence
Engagement plans must document _______ of the engagement - CORRECT
ANSWER timing
Preliminary risk assessments are conducted to help determine - CORRECT
ANSWER engagement objectives
Can the board's request that the chief audit executive also temporarily assume the
responsibility for the organization's risk management? - CORRECT
ANSWER safeguards must be in place to limit impairments to independence or
objectivity. Safeguards will allow the chief audit executive to assume this additional
responsibility.
The risk assessment must be updated at least - CORRECT ANSWER annually
Criteria established by _______ must be used if the internal auditors determine the criteria is
adequate - CORRECT ANSWER management
When should IA request that the chief audit executive allow the current engagement scope to
be modified to accommodate the additional work - CORRECT ANSWER when
additional work is required beyond the current scope of the engagement
According to the Standards, the ability of the internal audit activity to perform assurance
services where it had previously performed consulting services - CORRECT
ANSWER may be provided if objectivity was not impaired and individual objectivity
is managed
, the internal audit charter authorizes - CORRECT ANSWER access to records relevant
to the performance of engagements.
According to the Standards, the engagement scope must be based on the _______ established
for the engagement - CORRECT ANSWER objectives
Regarding the audit planning process, first _______ objectives of the activity being reviewed
- CORRECT ANSWER Consider
What is sufficiency - CORRECT ANSWER To be persuasive, audit evidence must be
relevant, reliable and sufficient criteria to determine the persuasiveness of audit evidence
What sources of information would provide an internal auditor with the highest level of
reliability - CORRECT ANSWER Bank confirmations
What is vouching? - CORRECT ANSWER Vouching is the process of comparing two
sources of information for accuracy and completeness.
CAATs can _______ audit risk for any tests performed - CORRECT ANSWER lower
What are compensating controls - CORRECT ANSWER Compensating controls are
designed to supplement key (primary) controls.
Small organizations typically have challenges _______ due to a limited number of employees
- CORRECT ANSWER separating responsibilities
_______ is primarily established by the chief executive officer and the observed actions of
senior management - CORRECT ANSWER Tone
The typical scale used for a risk assessment matrix consists of - CORRECT
ANSWER Likelihood and impact
QUESTIONS AND CORRECT ANSWERS
What is professional skipticism? - CORRECT ANSWER the state of mind in which IA
take nothing for granted; they continuously question what they hear and see and critically
assess audit evidence
Engagement plans must document _______ of the engagement - CORRECT
ANSWER timing
Preliminary risk assessments are conducted to help determine - CORRECT
ANSWER engagement objectives
Can the board's request that the chief audit executive also temporarily assume the
responsibility for the organization's risk management? - CORRECT
ANSWER safeguards must be in place to limit impairments to independence or
objectivity. Safeguards will allow the chief audit executive to assume this additional
responsibility.
The risk assessment must be updated at least - CORRECT ANSWER annually
Criteria established by _______ must be used if the internal auditors determine the criteria is
adequate - CORRECT ANSWER management
When should IA request that the chief audit executive allow the current engagement scope to
be modified to accommodate the additional work - CORRECT ANSWER when
additional work is required beyond the current scope of the engagement
According to the Standards, the ability of the internal audit activity to perform assurance
services where it had previously performed consulting services - CORRECT
ANSWER may be provided if objectivity was not impaired and individual objectivity
is managed
, the internal audit charter authorizes - CORRECT ANSWER access to records relevant
to the performance of engagements.
According to the Standards, the engagement scope must be based on the _______ established
for the engagement - CORRECT ANSWER objectives
Regarding the audit planning process, first _______ objectives of the activity being reviewed
- CORRECT ANSWER Consider
What is sufficiency - CORRECT ANSWER To be persuasive, audit evidence must be
relevant, reliable and sufficient criteria to determine the persuasiveness of audit evidence
What sources of information would provide an internal auditor with the highest level of
reliability - CORRECT ANSWER Bank confirmations
What is vouching? - CORRECT ANSWER Vouching is the process of comparing two
sources of information for accuracy and completeness.
CAATs can _______ audit risk for any tests performed - CORRECT ANSWER lower
What are compensating controls - CORRECT ANSWER Compensating controls are
designed to supplement key (primary) controls.
Small organizations typically have challenges _______ due to a limited number of employees
- CORRECT ANSWER separating responsibilities
_______ is primarily established by the chief executive officer and the observed actions of
senior management - CORRECT ANSWER Tone
The typical scale used for a risk assessment matrix consists of - CORRECT
ANSWER Likelihood and impact
