Free Access IIA IIA-CHAL-QISA New Release

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Question 28

An internal auditor is asked to determine why the production line for a large manufacturing organization has been experiencing shutdowns due to unavailable parts The auditor learns that production data used for generating automatic purchases via electronic interchange is collected on personal computers connected by a local area network (LAN) Purchases are made from authorized vendors based on both the production plans for the next month and an authorized materials requirements plan (MRP) that identifies the parts needed per unit of production. The auditor suspects the shutdowns are occurring because purchasing requirements have not been updated for changes in production techniques. Which of the following audit procedures should be used to test the auditor's theory?

Options:

Compare purchase orders generated from test data Input into the LAN with purchase orders generated from production data for the most recent period.

Develop a report of excess inventory and compare the inventory with current production volume.

Compare the parts needed based on current production estimates and the MRP for the revised production techniques with the purchase orders generated from the system for the same period

Select a sample of production estimates and MRPs for several periods and trace them into the system to determine that input is accurate

Question 29

Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

Options:

Advising new internal auditors working for the organization on how to develop strategies on planning audits for the upcoming fiscal year

Assessing whether the organization's corporate social responsibility program is meeting its yearly goals to reduce carbon emissions.

Briefing the organization's department managers on how to implement risk management processes into their daily operations.

Communicating with senior management to better understand how new purchasing controls will minimize payment processing time

Question 30

A multinational organization has asked the internal audit activity to assist in setting up the organization's risk management system The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?

Options:

Coordinate and facilitate risk workshops for management to attend

Establish the degree of risk appetite for management to accept.

Set risk Indicators and mitigation plans for management to Implement.

Determine the number of significant risks for management to report to the board

Question 31

During a payroll audit, the internal auditor discovered that several individuals who have the same position classification as the are earning a significantly higher salary. The auditor noted the names and amounts of each; and he planned to prepare a request to the chief audit executive for a salary Increase based on this Information. Which of the following IIA Code of Ethics principles was violated in this scenario?