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IIA Internal Audit Practitioner Sample Questions (Q30-Q35):

NEW QUESTION # 30
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?

A. The results of the discussion form part of the internal auditor's performance review
B. The information may be needed if a disagreement about the content arises
C. The Standards require that the internal auditor document exit meetings

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Exit Meetings: The purpose of an exit meeting is to ensure that management understands and agrees (or documents any disagreements) with the audit findings, conclusions, and recommendations. Proper documentation ensures that there is a record of the discussion, which can be referred to later if disputes arise about the content.

NEW QUESTION # 31
Which of the following elements of the Fraud Triangle is directly under the organization's control?

A. Opportunity
B. Pressure
C. Rationalization

Answer: A

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Opportunity: Organizations can reduce fraud risk by implementing strong internal controls, which limit opportunities for fraud. Examples include segregation of duties, access restrictions, and audit trails.

NEW QUESTION # 32
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?

A. An auditor with strong leadership skills who has experience leading projects for the IT auditdepartment.
B. An auditor who has investment audit experience from a previous organization, but who has never performed investment audits at the current organization.
C. An auditor who transferred from the investment department six months prior and has expert knowledge of investments.

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Reference to IIA Standards:
* Standard 1210 - Proficiency: Internal auditors must possess the necessary knowledge, skills, and competencies to conduct audits effectively.
* The auditor should have the relevant expertise to evaluate investment-related test attributes.
* Reasoning:
* Option Ais correct because the auditor has direct knowledge and expertise in investments, making them the most qualified to determine the relevant test attributes for the audit.
* Option B(IT audit experience) does not align with the specific skills required for investment auditing.
* Option C(previous experience) may offer some advantage, but the lack of familiarity with the current organization's processes limits the auditor's effectiveness.
* Importance of Expertise:
* Selecting an auditor with relevant experience and proficiency ensures that the audit will be conducted with accuracy and that the proper test attributes will be identified.

NEW QUESTION # 33
Which of the following statements is true regarding engagement status meetings?

A. They mainly involve one-way communication from the internal auditor to management of the area under review.
B. They should involve the chief audit executive and senior management.
C. They are expected to enhance the relationships between the internal audit activity and management of the area under review.

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Enhancing Relationships: Status meetings facilitate two-way communication, keeping management informed about audit progress and fostering collaboration. Open discussions during these meetings help address concerns and strengthen the relationship between internal audit and management.

NEW QUESTION # 34
According to IIA guidance, which one of the following hiring strategies is most appropriate to fill internal audit positions?

A. Hire the required number of internal auditors to accomplish the audit plan
B. Recruit candidates to fulfill the skills requirement of the internal audit activity
C. Assess each candidate's competency for an upcoming audit

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Skills-Based Recruitment: Internal audit activities require diverse skills to handle complex audits.
Recruiting candidates based on the skills needed ensures the internal audit activity can fulfill its mandate effectively.

NEW QUESTION # 35
......

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