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IIA ACCA CIA Challenge Exam Sample Questions (Q12-Q17):

NEW QUESTION # 12
Which of the following is true regarding the use of a formal risk management framework?
1. It facilitates a methodical approach to risk mitigation.
2. It defines and standardizes the terminology used in risk communication.
3. It establishes the risk tolerance levels to be accommodated in the strategy.
4. It facilitates the alignment of risk mitigation strategies with management priorities.

A. 1.2, and 3.
B. 2. 3, and 4.
C. 1,2, and 4.
D. 1.3, and 4.

Answer: C

NEW QUESTION # 13
The chief audit executive (CAE) of a small internal audit activity (IAA) plans to test conformance with the Standards through a quality assurance review. According to the Standards, which of the following are acceptable practice for this review?
1. Use an external service provider.
2. Conduct a self-assessment with independent validation.
3. Arrange for a review by qualified employees outside of the IAA.
4. Arrange for reciprocal peer review with another CAE.

A. 2 and 4
B. 2, 3, and 4
C. 1, 2, and 3
D. 1 and 2

Answer: D

NEW QUESTION # 14
What is the primary benefit to the internal audit activity for undertaking an internal quality assessment?

A. To help improve the overall quality of the internal audit activity's work.
B. To help the internal audit activity complete its annual assurance plan.
C. To identify key risks and areas of concern within the organization.
D. To identify inefficiencies within the internal audit team.

Answer: A

NEW QUESTION # 15
When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?
1. Management's tolerance for specific risks.
2. The cost versus benefit of implementing a control.
3. Whether a control can mitigate multiple risks.
4. The ability to test the effectiveness of the control.

A. 2, 3, and 4
B. 1, 2, and 3
C. 1, 2, and 4
D. 1, 3, and 4

Answer: D

NEW QUESTION # 16
The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process, which can involve multiple individuals in multiple countries.
Which of the following internal audit tools would be most effective to document the process and the key controls?

A. Segregation of duties matrix.
B. Cross-functional flow chart.
C. Internal control checklist.
D. Procurement employee survey.

Answer: B

NEW QUESTION # 17
......

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