Qualified Internal Auditor v6.0 (QIA)

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Total 84 questions

In order for internal auditors to be able torecognizepotential fraud, they must be aware of the basic characteristics of fraud. Which of the following is not a characteristic of fraud?

  • A. Intentional deception.
  • B. Taking unfair or dishonest advantage.
  • C. Perpetration for the benefit or detriment of theorganization.
  • D. Negligence on the part of executive management.


Answer : D

Which of the following documents would provide the best evidence that a purchase transaction has actually occurred?

  • A. Cancelled cheque issued in payment of the procured goods.
  • B. Ordering department's original requisition for the goods.
  • C. Receiving memorandum documenting the receipt of the goods.
  • D. Supplier's invoice for the procured goods.


Answer : C

An auditor selected a random sample of 100 items from a population of 2,000 items. The total dollars in the sample were $10,000, and the standard deviation was $10. If the achieved precision based on this sample was plus or minus $4,000, the minimum acceptable value of the population would be

  • A. $204,000
  • B. $196,000
  • C. $199,000
  • D. $199,800


Answer : B

During the audit of inventories, an internal auditor specified a precision of 5% instead of the
4% contained in the preliminary audit program.
What would be the impact of the change in precision?

  • A. A decrease in population standard deviation.
  • B. An increase in population standard deviation.
  • C. A decrease in required sample size
  • D. An increase in required sample size


Answer : C

In a variables sampling application, which of the following factors will vary directly with a change in confidence level from 90% to 95%?

  • A. Standard error of the mean.
  • B. Non-sampling error.
  • C. Achieved precision.
  • D. Point estimate of the arithmetic mean.


Answer : C

An audit team developed a preliminary questionnaire with the following response choices:
I.Probably not a problem.
II.Possibly a problem.
III.Probably a problem.
The questionnaire illustrates the use of

  • A. Trend analysis.
  • B. Ratio analysis.
  • C. Unobtrusive measures or observations.
  • D. Rating scales.


Answer : D

During an audit, the internal auditor should consider the following factor(s) in determining the extent to which analytical procedures should be used, Except

  • A. Adequacy of the system of internal control.
  • B. Significance of the area being examined.
  • C. Precision with which the results of analytical audit procedures can be predicted.
  • D. Preparation of employee questionnaire policy.


Answer : D

How does CSA differ from traditional methods of auditing?

  • A. Shifts some of the responsibilities away from the auditors towards others such as work teams.
  • B. Allocated additional responsibilities to internal audit.
  • C. Reduces the level of collaboration required between managers and internal auditor.
  • D. Allows assessment to be carried out without any internal audit involvement whatsoever, therefore allowing them to focus their attention on other areas of theorganization.


Answer : A

Which of the following is not an activity of internal audit function?

  • A. Examining financial and operating information
  • B. Review of the economy, efficiency and effectiveness of operations
  • C. Review of compliance with laws, regulations and other external requirements
  • D. Confirming that the final result (the sum) is correct


Answer : D

Which of the following areas are addressed by attribute standards?

  • A. Independence, objectivity, and nature of the work
  • B. Independence, communication of findings, and the resolution of problems affecting the risks accepted by management
  • C. Independence, objectivity and proficiency
  • D. Engagement planning, engagement execution, and progress monitoring


Answer : C

Your assurance firm is auditor of Happy Goods. The audit manager has just become engaged to the managing directors daughter, who he met through a mutual friend. The managing director owns 51% of the shares in Happy Goods. Which of the threat is not there in this case?

  • A. Intimidation threat
  • B. Familiarity threat
  • C. Self-interest threat
  • D. Advocacy threat


Answer : D

Which of the following is not an argument for principles-based approach to corporate governance?

  • A. The same rules might not be suitable for every company
  • B. There are some aspects of corporate governance that cannot be regulated easily
  • C. Companies do not have the choice of ignoring the rules
  • D. The most suitable corporate governance practices can differ between companies


Answer : C

The following are potential sources of evidence regarding the effectiveness of the division's total quality managementprogram. Assume that, all comparisons are for similar time periods and duration and current items are compared with similar items before the implementation of the total quality managementprogram.
The least persuasive evidence would be a comparison of

  • A. Employee morale over the two time periods.
  • B. Scrap and rework costs over the two time periods.
  • C. Customer returns over the two time periods.
  • D. Manufacturing and distribution costs per unit over the two time periods.


Answer : A

Which of the following is not a component of audit risk?

  • A. Inherent risk
  • B. Control risk
  • C. Defective risk
  • D. Detection risk


Answer : C

Accounts payable schedule verification may include the use of analytical evidence.
Which of the following is most appropriately described as analytical evidence?

  • A. Comparing the items on the schedule with the accounts payable ledger or unpaid voucher file.
  • B. Comparing the balance on the schedule with the balances of prior years.
  • C. Comparing confirmations received from selected creditors with the accounts payable ledger.
  • D. Examining vendors' invoices in support of selected items on the schedule.


Answer : B

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Total 84 questions