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IIA Practice of Internal Auditing Sample Questions (Q178-Q183):

NEW QUESTION # 178
A chief audit executive (CAE) has decided to add an engagement to the current audit plan which will exceed available audit resources. Which of the following is the best course of action for the CAE to take?

A. Seek approval from senior management and the board of directors for the plan change and advise them of the issue of limited resources.
B. Immediately seek additional resources from senior management and the board of directors to meet the needs of the organization.
C. Add this change to the plan and request senior management to indicate which other engagement should be deleted to keep the overall plan within resource constraints.
D. Present the plan change to senior management and request additional resources before going to the board of directors.

Answer: A

NEW QUESTION # 179
Which of the following would be the most helpful to a chief audit executive when developing a talent management strategy?

A. Gap analysis
B. Maturity analysis
C. Staff preferences
D. Extent of external audit coverage

Answer: A

Explanation:
When developing a talent management strategy, a chief audit executive would find a gap analysis most helpful. A gap analysis identifies the differences between the current skills and competencies of the internal audit staff and the skills and competencies needed to achieve the audit function's objectives. This analysis helps in understanding the specific areas where training, recruitment, or other talent development efforts are necessary, thus enabling the development of a targeted and effective talent management strategy.
References:
* IIA Practice Guide: "Talent Management for Internal Auditors"
* IIA Standard 2030: "Resource Management"

NEW QUESTION # 180
Which of the following does not represent a difficulty in using red flags as fraud indicators?

A. Many common red flags are also associated with situations where no fraud exists.
B. The red flags literature is not well enough established to have a positive impact on auditing.
C. Red flag information is only gathered in extraordinary circumstances.
D. Some red flags are difficult to quantify or to evaluate.

Answer: B

NEW QUESTION # 181
The internal audit activity of an organization obtained approval to add a senior auditor to its staff. The chief audit executive, audit manager, and audit supervisor each will interview the candidates. According to the Standards, which of the following best explains the involvement of management in the interview process?

A. Allows audit management to explain the criteria that will be used to evaluate the senior auditor's performance.
B. Assists audit management in planning by more effectively allocating the senior auditor to appropriate audits.
C. Enables audit management to outline its quality assurance and improvement program with the senior auditor.
D. Provides audit management with the opportunity to communicate expectations regarding ethical behavior standards.

Answer: B

Explanation:
Section: Volume C

NEW QUESTION # 182
The final internal audit report should be distributed to which of the following individuals?

A. Audit client management only
B. Audit client management, executive management, and others approved by the chief audit executive.
C. Audit client management, executive management, and any those who request a copy.
D. Executive management only

Answer: B

Explanation:
Section: Volume E

NEW QUESTION # 183
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