IQN QIA Exam Questions Free Practice Test

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Viewing questions 11-20 out of questions

Questions # 11:

A Qualified Internal Auditor directs the audit function for a large city and is planning the audit schedule for the next year. The city has a number of different funds, some that are restricted in use by government grants and some that require compliance reports to the government. One of the programs for which the city has received a grant is job retraining and placement. The grant specifies certain conditions a participant in the program must meet in order to be eligible for the funding.

The auditor must determine the applicable laws and regulations.

Which of the following procedures would be the least effective in learning about the applicable laws and regulations?

Options:

Make inquiries of the city's chief financial officer, legal counsel, or grant administrators.

Review prior year working papers and enquire of officials as to changes.

Review applicable grant agreements.

Discuss the matter with the audit committee and make inquiries as to the nature of the requirements and the audit committee's objectives for the audit.

Expert Solution

Questions # 12:

Auditors realize that at times corrective action is not taken even when agreed to by the appropriate parties. This should lead an internal auditor to

Options:

Decide the extent of necessary follow-up work.

Allow management to decide when to follow-up, since it is management’s ultimate responsibility.

Decide to conduct follow-up work only if management requests the auditor's assistance.

Write a follow-up audit report with all findings and their significance to the operations.

Expert Solution

Questions # 13:

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

Options:

The same rules might not be suitable for every company

There are some aspects of corporate governance that cannot be regulated easily

Companies do not have the choice of ignoring the rules

The most suitable corporate governance practices can differ between companies

Expert Solution

Questions # 14:

Purchases from two new vendors increased dramatically after a new buyer was hired. The buyer was obtaining kickbacks from the two vendors based on sales volume.

A possible means of detection is

Options:

Periodic vendor surveys regarding potential buyer conflict of interest or ethics violations.

The receipt of an invoice to put new vendors on the master file.

The use of purchase orders for all purchases.

The use of change analysis and trend analysis of buyer or vendor activity.

Expert Solution

Questions # 15:

Internal auditors must exercise due care if they are to meet their responsibilities for fraud detection. Thus, the existence of certain conditions should raise red flags and arouse auditors' professional scepticism concerning possible fraud.

Which of the following is most likely to be considered an indication of possible fraud?

Options:

A new management team installed as the result of a takeover.

Rapid turnover of financial executives.

Rapid expansion into new markets.

An Internal Revenue Service audit of tax returns.

Expert Solution

Questions # 16:

Each individual work paper should, at a minimum, contain

Options:

An expression of an audit opinion.

A tick mark legend.

A complete flowchart of the system of internal controls for the area being reviewed.

A descriptive heading.

Expert Solution

Questions # 17:

One concern of a user of a computer service centre is that one firm's transactions may accidentally be used in the process of updating a second firm's master files. The control procedure that would best provide assurance of the integrity of the master files during updating processes is a check for

Options:

Completeness of input, such as a computer sequence check.

Correct master files, such as a header label.

Input accuracy, such as a check of detail reports.

Accuracy of file maintenance, such as review of exception reports.

Expert Solution

Questions # 18:

What evidence is appropriate to determine that recorded purchase transactions were valid and at the best price?

Options:

Purchase requisitions, journal voucher entries, and bid quotes.

Purchase requisitions, purchase orders, and bid quotes.

Receiving reports, purchase orders, and purchase requisitions.

Purchase orders, receiving reports, and bid quotes.

Expert Solution

Questions # 19:

Management is legally required to prepare a shipping document for all movement of hazardous materials. The document must be filed with bills of lading. Management expects 100% compliance with the procedure.

Which of the following sampling approaches would be most appropriate?

Options:

Attributes sampling.

Discovery sampling.

Targeted sampling.

Variables sampling.

Expert Solution

Questions # 20:

Computer fraud is discouraged by

Options:

Being willing to prosecute.

Ostracizingwhistle-blowers.

Overlooking inefficiencies in the judicial system.

Accepting the lack of integrity in the system.

Expert Solution

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