Test IIA-CHAL-QISA Preparation | Detailed IIA-CHAL-QISA Study Plan
Test IIA-CHAL-QISA Preparation | Detailed IIA-CHAL-QISA Study Plan
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IIA IIA-CHAL-QISA Exam Syllabus Topics:
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Detailed IIA-CHAL-QISA Study Plan | Valid Dumps IIA-CHAL-QISA Questions
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IIA Qualified Info Systems Auditor CIA Challenge Exam Sample Questions (Q70-Q75):
NEW QUESTION # 70
According to IIA guidance, which of the following best describes the purpose of a planning memorandum for an audit engagement?
- A. It documents events that could hinder the achievement of process objectives.
- B. it documents preliminary information useful to the audit team.
- C. It documents existing measures that manage risks in the area under review
- D. It documents the audit steps and procedures to be performed.
Answer: D
Explanation:
The planning memorandum serves as a comprehensive blueprint for an audit engagement, outlining the specific steps, procedures, and strategies that will be employed to carry out the audit. According to IIA guidance, the purpose of this document is to ensure that the audit team is well-prepared and that the audit process is systematic and thorough.
* Documentation of Audit Steps and Procedures:The primary purpose of a planning memorandum is to detail the steps and procedures that the audit team will follow. This ensures consistency and clarity throughout the audit process and provides a clear framework for team members to follow.
*
NEW QUESTION # 71
Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?
- A. Appoint the chief audit executive as a member of the board.
- B. Adopt written policies and procedures for the internal audit activity, approved by the board.
- C. Establish the internal audit activity's position within the organization in an audit charter
- D. Ensure the chief audit executive reports administratively to the audit committee.
Answer: C
Explanation:
The internal audit charter is a formal document that defines the internal audit activity's purpose, authority, and responsibility.
Establishing the internal audit activity's position within the organization in an audit charter ensures independence and objectivity by clearly stating the internal audit's role and its reporting lines.
The charter should be approved by the board and senior management to reinforce its authority and protect the internal audit activity from undue influence by management
NEW QUESTION # 72
For a new board chair who has not previously served on the organization's board, which of the following steps should first be undertaken to ensure effective leadership to the board*?
- A. Chair should gain an understanding of the needs of key stakeholders.
- B. Chair should determine the appropriateness of the current strategic risks.
- C. Chair should learn the current organizational culture of the company.
- D. Chair should learn the current risk management system of the company
Answer: C
Explanation:
For a new board chair who has not previously served on the organization's board, the first step should be to learn the current organizational culture of the company. Understanding the culture is crucial for effective leadership and decision-making.
* Organizational Culture: It shapes the behavior, values, and practices within the company, and understanding it is essential for aligning the board's actions with the company's ethos.
* Leadership: A deep understanding of the culture helps the chair to lead more effectively, fostering a positive environment and ensuring cohesive governance.
* Strategic Alignment: Ensures that the board's strategies and policies are in sync with the organizational culture, promoting better implementation and acceptance.
References:
* "Corporate Governance: Principles and Practices," which highlights the importance of understanding organizational culture for effective board leadership .
NEW QUESTION # 73
Which of the following statements is true regarding partnership liquidation?
- A. Partnership liquidation ends both the legal and economic life of an entity
- B. Operations can continue after the liquidation, if all partners agree.
- C. Partnership liquidation occurs when there is capital deficiency.
- D. When a partnership Is liquidated, each partner pays creditors from cash received
Answer: A
Explanation:
Partnership liquidation refers to the process of dissolving a partnership, where all assets are sold, liabilities are paid off, and any remaining assets are distributed among the partners. This process marks the end of the partnership's legal existence and its economic activities.
* Legal and Economic Termination: Upon liquidation, the partnership ceases to exist legally and economically. This means that it can no longer operate or enter into new business transactions.
* Asset Distribution: The liquidation process ensures that all assets are sold, and the proceeds are used to pay off any outstanding debts. Any remaining funds are distributed to the partners according to the partnership agreement.
* Capital Deficiency: While capital deficiency might prompt liquidation, it is not a defining characteristic of the process.
* Creditors Payment: Creditors are paid from the partnership's assets, not directly by the partners unless agreed otherwise or if the assets are insufficient to cover the liabilities.
References:
* "Fundamentals of Partnership Accounting," which details the steps and consequences of partnership liquidation.
NEW QUESTION # 74
Which of the following offers the best explanation of why the auditor in charge would assign a junior auditor to complete a complex part of the audit engagement?
- A. The senior auditors are unavailable, as they are currently working on other portions of the engagement
- B. The audit engagement has a tight deadline and the work must be completed timely.
- C. The auditor in charge is unable to identify audit staff with all of the required skills needed to complete the engagement
- D. The auditor in charge believes that the junior auditor should obtain a specific type of experience.
Answer: D
Explanation:
Assigning a junior auditor to complete a complex part of an audit engagement can be a strategic decision aimed at providing the junior auditor with valuable experience. This exposure to complex tasks helps in their professional development, building their skills and knowledge for future responsibilities. Although tight deadlines or the unavailability of senior auditors might be factors, the primary reason is often to enhance the junior auditor's competence and career growth.
NEW QUESTION # 75
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