IQN QIA - Qualified Internal Auditor Exam
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Total 80 questions
Question #6 (Topic: )
Anorganizationuses a service bureau to process its hourly payroll transactions. The internal
auditor is concerned that the hourly payroll for the year has been processed correctly and,
in particular, the computation of employee withholding for pension contributions is in
accordance with the union contract, which specifies charges each quarter.
Which of the following audit procedures would best accomplish the audit objective?
auditor is concerned that the hourly payroll for the year has been processed correctly and,
in particular, the computation of employee withholding for pension contributions is in
accordance with the union contract, which specifies charges each quarter.
Which of the following audit procedures would best accomplish the audit objective?
A. Select a random sample of all hourly payroll transactions for the reporting period, re- compute pay and withholding items, and compare the result with that obtained from the service bureau.
B. Select a stratified sample of all hourly and salaried payroll transactions for an entire reporting period, perform the necessary activities, and then compare the result with that obtained from the service bureau.
C. Select a discovery sampling of all payroll transactions for an entire reporting period and then follow up on any findings.
D. Submit a set of test data to the service bureau during an annual audit and compare the service bureau's processing with the auditor's predetermined computations on the same test data.
Answer: D
Question #7 (Topic: )
The objective of aprogramresults audit requires the auditor to
A. Place an emphasis on outputs rather than inputs.
B. Look for cost savings or waste.
C. Include only historical data in the audit.
D. Render an opinion on the fairness of financial presentation.
Answer: A
Question #8 (Topic: )
In addition to controls over access, processing, program changes, and other functions,
acomputerizedsystem needs to establish an audit trail of information.
Which of the following information would generally not be included in an audit trail log
designed tosummariesunauthorizedsystem access attempts?
acomputerizedsystem needs to establish an audit trail of information.
Which of the following information would generally not be included in an audit trail log
designed tosummariesunauthorizedsystem access attempts?
A. A list ofauthorizedusers.
B. The type of event or transaction attempted.
C. The terminal used to make the attempt.
D. The data in the program sought.
Answer: A
Question #9 (Topic: )
Audits vary in their degree of objectivity. Of the following, which is likely to be the most
objective?
objective?
A. Compliance audit of company's overtime policy.
B. Operational audit of the personnel function hiring and firing procedures.
C. Performance audit of the marketing department.
D. Financial control audit over payroll procedures.
Answer: A
Question #10 (Topic: )
The internal auditors of a financial institution are auditing the institution's investing and
lending activities. During the last year, the institution has adopted new policies and
procedures for monitoring investments and the loan portfolio. The auditors know that the
organisation has invested in new types of financial instruments during the year and is
heavily involved in the use of financial derivatives to appropriately hedge risks
The audit committee has expressed concern that the financial institution has been taking
on higher-risk loans in pursuit of short term profit goals.
Which of the following audit procedures would provide the least amount of information to
address this audit concern?
lending activities. During the last year, the institution has adopted new policies and
procedures for monitoring investments and the loan portfolio. The auditors know that the
organisation has invested in new types of financial instruments during the year and is
heavily involved in the use of financial derivatives to appropriately hedge risks
The audit committee has expressed concern that the financial institution has been taking
on higher-risk loans in pursuit of short term profit goals.
Which of the following audit procedures would provide the least amount of information to
address this audit concern?
A. Perform an analytical review of interest income as a percentage of the investment portfolio in comparison with a group of peer financial institutions.
B. Take a random sample of loans made during the period and compare the riskiness of the loans with that of a random sample of loans made two years ago.
C. Perform an analytical review that involves developing a chart to compare interest income plotted over the past ten years.
D. Develop a multiple regression time series analysis of income over the past five years, including such factors as interest rate in the economy, size of loan portfolio, and dollar amount of new loans each year.
Answer: C
