New (2025) IIA IAA-IAP Exam Dumps [Q55-Q78]

NEW QUESTION 55
During which stage of an audit engagement would the engagement supervisor identify the tasks that were already completed and the remaining tasks to be performed?

When allocating resources.

When developing the test approach.

When documenting the work program.

NEW QUESTION 56
What is the purpose of establishing engagement objectives during the planning phase of an internal audit?

To ensure that audit procedures are designed to address the risks relevant to the area being audited.

To ensure that all auditors have a common understanding of the area being audited.

To ensure that the work performed by other internal or external assurance providers is considered during audit planning.

NEW QUESTION 57
Which of the following is an example of a detective control?

Segregation of duties.

Reconciliations.

Required authorizations.

NEW QUESTION 58
Which of the following situations is most likely to require a compliance engagement from the internal audit activity?

An organization must restate its financial statements due to an error in fixed asset valuation.

An organization is preparing to launch an enhanced service for its online customer information system.

An organization is subject to newly imposed industry health and safety regulations.

NEW QUESTION 59
Which sampling technique uses a nonrandom selection process that is expected to be representative of the population as a whole?

Judgmental sampling.

Haphazard sampling.

Attribute sampling.

NEW QUESTION 60
An internal auditor was gathering information regarding the receiving process and decided that a narrative memorandum was the best way to document the process. Which of the following explanations best supports the auditor’s decision?

The department has comprehensive manuals

The process is simple and does not need a visual depiction

The audit engagement is not considering efficiency

NEW QUESTION 61
Which of the following describes an internal auditor’s use of external benchmarking?

The auditor calculates the net profit margin for a business segment to analyze the profitability.

The auditor compares return on equity for a beverage company against its competitor to analyze profitability.

The auditor evaluates operating income margin between geographical areas within an organization to analyze its profitability.

NEW QUESTION 62
Which of the following best describes an audit engagement in which the objective is to appraise the economy of an oil shale mining process and the degree to which yearly production targets are being achieved?

Due diligence

Business process improvement

Operational

NEW QUESTION 63
Which of the following scenarios would be the strongest indicator of fraud in an accounts payable process?

The accounts payable manager was unable to provide documentation relating to travel expenses on one of the samples selected.

The invoices submitted by one of the organization’s vendors are more than six months old.

The address on one of the vendor invoices matches an employee’s residential address.

NEW QUESTION 64
When determining the appropriate level of resources needed for an engagement, which of the following would be the first step?

Determine the sufficiency of internal audit staff

Identify required technology and audit tools

Determine travel and related costs for the engagement

NEW QUESTION 65
Which of the following is a common computer-assisted audit tool used to analyze data?

Social media

Spreadsheet software

Word processing software

NEW QUESTION 66
Which of the following is an advantage of communicating audit observations as they are identified?

The auditor may receive additional pertinent documentation or other relevant information

The auditor may not need to communicate the final results of the audit to the board

The auditor may be able to plan more efficiently next year’s audit

NEW QUESTION 67
Which of the following internal auditor attributes benefits the most from continuous professional development?

Integrity.

Objectivity.

Competency.

NEW QUESTION 68
The engagement supervisor is coordinating an audit of investments and needs to select an audit team member to determine the test attributes. Which of the following team members is most appropriate for the engagement supervisor to select?

An auditor who transferred from the investment department six months prior and has expert knowledge of investments.

An auditor with strong leadership skills who has experience leading projects for the IT auditdepartment.

An auditor who has investment audit experience from a previous organization, but who has never performed investment audits at the current organization.

NEW QUESTION 69
Which of the following is an example of criteria in an engagement communication?

Annual business conduct training was not performed over the past two years due to inadequate operating budgets.

The audit test was designed to evaluate compliance with the organization’s policies and procedures related to business conduct and ethics.

As a result of inadequate business conduct training, 16% of the executive team was unaware of their obligation to report potential conflicts of interest.

NEW QUESTION 70
According to IIA guidance, which of the following is the primary criterion that should determine the extent of supervision required for an audit engagement?

The number of hours approved by the board for that engagement.

The proficiency of the internal auditors and the complexity of the engagement.

Whether the engagement involves possible violations of laws and governmental regulations.

NEW QUESTION 71
Which of the following conditions involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?

The CAE regularly attends and participates in critical executive management meetings for the organization.

The CAE has direct access to records, personnel, and physical properties throughout the organization.

The CAE reports directly to the controller for the organization, and the internal audit activity resides in the office of the comptroller.

NEW QUESTION 72
Which of the following best describes the purpose of a detailed engagement risk assessment?

To ensure that all risks identified during the engagement planning process are addressed during the audit.

To prioritize risks to the activity’s objectives, according to the likelihood of occurrence.

To consider significant risks to the activity’s objectives and the means by which the potential impact of risk is kept to an acceptable level.

NEW QUESTION 73
A member of the internal audit team worked eight months ago in an area of the organization that she is now being tasked with auditing. Which of the following would most likely be impacted by her participation in the audit?

Integrity

Objectivity

Competency

NEW QUESTION 74
Which of the following is the best audit procedure to determine whether all of a bank’s loans are backed by sufficient collateral, properly aged as to current payments, and properly categorized as current or noncurrent?

Use generalized audit software to read the total loan file, age the file by last payment due, and select a statistical sample stratified by the current and aged population. Examine each loan selected for proper collateralization and aging.

Select a block sample of all loans in excess of a specified dollar limit and determine whether they are current and properly categorized. For each loan approved, verify aging and categorization.

Select a discovery sample of all loan applications to determine whether each application contains a statement of collateral.

NEW QUESTION 75
The chief audit executive scheduled an exit meeting to discuss conclusions and recommendations with management before issuing the final engagement communication. Which of the following describes the primary reason that the exit meeting should be documented?

The Standards require that the internal auditor document exit meetings

The information may be needed if a disagreement about the content arises

The results of the discussion form part of the internal auditor’s performance review

NEW QUESTION 76
Which of the following best describes the knowledge, skills, and abilities that internal auditors should possess with regard to fraud?

Expertise in detecting and investigating fraud.

Sufficient knowledge to evaluate the risk of fraud.

Specialized skills for developing and implementing controls to prevent fraud.

NEW QUESTION 77
Which of the following best demonstrates that appropriate and sufficient resources were allocated to an audit engagement to achieve its objectives?

Staff skills audit.

Approved engagement work program.

Post-engagement survey of management of the audited area.

NEW QUESTION 78
What are the typical elements of a risk and control matrix used in the engagement planning process?

Experience level of key management personnel, susceptibility of the process to fraud, and process automation.

Inherent process risks, as defined in a globally accepted risk and control framework.

Business objectives, risks to the objectives, and impact and likelihood of the risk occurring.