Free IIA IIA-IAP Exam Dumps Questions & Answers

The chief audit executive scheduled an exit meeting to discuss conclusions and recommendations with management before issuing the final engagement communication. Which of the following describes the primary reason that the exit meeting should be documented?

• A.  The information may be needed if a disagreement about the content arises
• B.  The results of the discussion form part of the internal auditor's performance review
• C.  The Standards require that the internal auditor document exit meetings

According to the IIA's Code of Ethics, which of the following best describes the conduct of an internal auditor who demonstrates the principle of competency?

• A.  The auditor continually improves her proficiency and the effectiveness and quality of her services
• B.  The auditor is prudent in the use and protection of information acquired in the course of her work
• C.  The auditor does not accept anything that may impair or be presumed to impair her professional judgment

Which of the following is the best audit procedure to determine whether all of a bank's loans are backed by sufficient collateral, properly aged as to current payments, and properly categorized as current or noncurrent?

• A.  Use generalized audit software to read the total loan file, age the file by last payment due, and select a statistical sample stratified by the current and aged population. Examine each loan selected for proper collateralization and aging.
• B.  Select a block sample of all loans in excess of a specified dollar limit and determine whether they are current and properly categorized. For each loan approved, verify aging and categorization.
• C.  Select a discovery sample of all loan applications to determine whether each application contains a statement of collateral.

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

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

Which of the following conditions involving the chief audit executive (CAE) is most likely to impair the independence of the internal audit activity?

• A.  The CAE regularly attends and participates in critical executive management meetings for the organization.
• B.  The CAE reports directly to the controller for the organization, and the internal audit activity resides in the office of the comptroller.
• C.  The CAE has direct access to records, personnel, and physical properties throughout the organization.