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IIA Internal Audit Practitioner Sample Questions (Q36-Q41):

NEW QUESTION # 36
When determining the appropriate level of resources needed for an engagement, which of the following would be the first step?

A. Determine travel and related costs for the engagement
B. Identify required technology and audit tools
C. Determine the sufficiency of internal audit staff

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Resource Sufficiency: Ensuring that the internal audit team has sufficient staff with the appropriate expertise is the foundational step in resource planning for an engagement.

NEW QUESTION # 37
Which of the following statements is true regarding engagement status meetings?

A. They are expected to enhance the relationships between the internal audit activity and management of the area under review.
B. They mainly involve one-way communication from the internal auditor to management of the area under review.
C. They should involve the chief audit executive and senior management.

Answer: A

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Enhancing Relationships: Status meetings facilitate two-way communication, keeping management informed about audit progress and fostering collaboration. Open discussions during these meetings help address concerns and strengthen the relationship between internal audit and management.

NEW QUESTION # 38
In addition to the internal auditor, which of the following parties need to be present at an exit or closing conference?

A. Audit committee members
B. The chief executive officer
C. Management over areas covered by the engagement

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Management Over Areas Covered by the Engagement: The purpose of an exit meeting is to discuss findings, conclusions, and recommendations with those responsible for the audited area. Management is a key stakeholder, as they will implement corrective actions.

NEW QUESTION # 39
Which of the following would be the best indicator that the organization's risk management processes are operating effectively?

A. The organization implemented formal operational risk management processes.
B. Management openly discusses both risks and opportunities facing the organization.
C. Management established policies and procedures that state risk will be considered.

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Open Discussions of Risks and Opportunities: The best indicator of effective risk management is a culture where management actively identifies, evaluates, and discusses risks and opportunities, integrating them into decision-making processes.

NEW QUESTION # 40
Which of the following describes how the internal audit activity can add the greatest value by assisting management with internal controls?

A. Internal auditors should monitor how internal controls are functioning.
B. Internal auditors should evaluate the effectiveness and efficiency of internal controls.
C. Internal auditors should assist in designing strong controls.

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Reference to IIA Standards:
* Standard 2130 - Control: Internal audit must evaluate and contribute to the improvement of governance, risk management, and control processes.
* Designing or operating controls (Options A and B) risks impairing internal audit independence (Standard 1100).
* Reasoning:
* Option Caligns with internal audit's role of evaluating internal controls objectively.
* Option Acould involve a management function, which compromises independence.
* Option Bfocuses on monitoring, a management responsibility, and does not leverage internal audit's evaluative expertise.
* Best Practice:
* By evaluating controls, internal auditors provide actionable insights that help improve control effectiveness and efficiency without compromising independence.

NEW QUESTION # 41
......

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