IIA iia-acca practice test

Which of the following techniques would provide the most compelling evidence that a safety hazard
exists within a manufacturing facility?

• A. Observation of the facility during operations.
• B. Questioning of facility management, including the facility safety officer.
• C. Analysis of facility operating reports, focusing on instances when breakdowns occurred.
• D. Review of records involving safety violations, filed by facility production employees.

While performing an accounts payable engagement, a senior auditor wants to conduct several tests
of controls for travel expenses. Which of the following actions are most appropriate for the senior
auditor to undertake?
1. Ensure all tests use a random sampling technique.
2. Consider a judgmental approach for the sample size.
3. Assess testing errors through root cause analysis.
4. Ensure that the entire data set is tested.

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

An internal auditor uses a predefined macro provided in a popular spreadsheet application to verify
the present value of the organization's investments. Which of the following is the most appropriate
course of action regarding the auditor's use of this functionality?

• A. The auditor should accept the calculations generated by the function, as any further work or documentation would be inefficient.
• B. The auditor should perform a manual recalculation of several results to validate and document the results.
• C. The auditor should review the programming of the macro before its use to ensure that it is appropriate for the required calculations.
• D. The auditor should tabulate the results in the spreadsheet to ensure the macro has generated the correct results for all calculations.

Which of the following factors should be considered when determining the appropriate combination
of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.

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

The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk
engagements on the annual audit plan to make use of his knowledge and experience and to
maximize the efficient use of audit resources. Which of the following statements is most relevant
regarding this practice?

• A. The CAE's work may be reviewed by any other experienced staff member within the IAA.
• B. The CAE's work should be reviewed by an individual with the appropriate background and knowledge.
• C. The CAE may self-review his work, provided he discloses this practice in the final report.
• D. The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.

According to IIA guidance, which of the following is not a responsibility of the chief audit executive
pertaining to documenting information to support internal audit engagement results and
conclusions?

• A. Rating each engagement record to assess its relevance and accessibility for the organization's board.
• B. Controlling access to engagement records, including access by senior management.
• C. Developing retention requirements for engagement records that are consistent with organizational guidelines.
• D. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.

An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by
management.
Which of the following correctly identifies the type of evidence this information represents?

• A. Competent, corroborative evidence of future working capital requirements.
• B. Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
• C. Competent, documentary evidence of future cash flow changes within the organization.
• D. Sufficient, circumstantial evidence of the future solvency of the organization.

Which of the following is an activity that an internal auditor must not perform?

• A. Establish and provide continuing assurance on an anti-money laundering program for new hires.
• B. Survey employees for their understanding of anti-money laundering practices.
• C. Provide assurance for the effectiveness of anti-money laundering training.
• D. Assess the risk of being fined for ineffective anti-money laundering practices.

Which of the following statements is true regarding assurance services provided to clients outside of
the organization?

• A. Assurance services for outside clients are not covered under the internal audit charter.
• B. Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.
• C. The nature of assurance services for outside clients should be defined in the internal audit charter.
• D. The nature of assurance services for outside clients is the same as for internal clients.

Sometimes, internal audit staff may partner with operating managers to rank risks. Which of the
following outcomes may be the most beneficial aspects of this strategy?
1. Reappraising risks levels.
2. Providing accurate information to management.
3. Marketing the internal audit activity.
4. Planning safeguards for assets in high-risk areas.

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