IIA-CHAL-QISA Free Practice Test

Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?

1. A. ISO 26000
2. B. Global Reporting Initiative.
3. C. Open Compliance and Ethics Group.
4. D. COSO??s enterprise risk management framework.

Correct Answer: B
✑ Understanding the GRI:The Global Reporting Initiative (GRI) provides a comprehensive framework for reporting on sustainability performance, including social responsibility aspects.
✑ Framework and Standards:GRI standards are widely used and recognized globally, which helps organizations benchmark their performance against other entities using the same framework.
✑ Stakeholder Communication:The GRI framework emphasizes transparency and accountability in reporting, making it an effective tool for informing stakeholders about an organization's social responsibility performance.
✑ Comprehensive Coverage:GRI covers various aspects of social responsibility, including economic, environmental, and social impacts, providing a holistic view of an organization's performance.
References:
✑ The Global Reporting Initiative (GRI) .

Which of the following is the next step in understanding a business process once an internal auditor has identified the process?

1. A. Determine process outputs
2. B. Determine process inputs.
3. C. Determine process activities.
4. D. Determine process goals

Correct Answer: C
Once an internal auditor has identified a business process, the next step is to understand the specific activities involved in that process. This includes mapping out each step or
action taken within the process to gain a detailed understanding of how it operates. Identifying process activities helps in evaluating the efficiency, effectiveness, and potential risks associated with the process

Which of the following is an advantage of utilizing an external fraud specialist in a suspected fraud investigation?

1. A. increased access to the organization's employees.
2. B. Increased ability to preserve evidence and the chain of command.
3. C. Increased ability to scrutinize the organization's key business processes.
4. D. increased access to the organization's software and proprietary data.

Correct Answer: B
✑ Introduction:
✑ Advantages of External Fraud Specialists:
✑ Options Analysis:
✑ Conclusion:
:
Internal Audit Standards and Practice Guides .

When using cost-volume-profit analysis, which of the following will increase operating income once the break-even point has been reached?

1. A. Fixed costs per unit for each additional unit sold.
2. B. Variable costs per unit for each additional unit sold.
3. C. Contribution margin per unit for each additional unit sold.
4. D. Gross margin per unit for each additional unit sold

Correct Answer: C
Contribution Margin: Contribution margin is the amount by which the sales price of a product exceeds its variable costs. After reaching the break-even point, each additional unit sold contributes directly to operating income.
: Cost-volume-profit (CVP) analysis, which highlights the role of contribution margin in
determining profitability.
Operating Income: At the break-even point, fixed costs are covered, so additional units sold increase operating income by the contribution margin per unit.
Fixed Costs: Fixed costs per unit (option A) do not change with additional units sold.
Variable Costs: Variable costs per unit (option B) remain constant and are deducted from sales price to calculate contribution margin.
Gross Margin: Gross margin per unit (option D) includes fixed costs and is less directly relevant than the contribution margin.

Which of the following statements is true regarding engagement planning?

1. A. The scope of the engagement should be planned according to the internal audit activity's budgetand then aligned to the risk universe.
2. B. The audit engagement objectives should be based on operational managements view of risk objectives
3. C. The planning phase of the engagement should be completed and approved before the fieldwork of the engagement begins.
4. D. The main purpose of the engagement work program is to determine the nature and timing of procedures required to gather audit evidence

Correct Answer: C
Proper engagement planning is essential to ensure that the internal audit engagement is conducted effectively and efficiently.
Completing and approving the planning phase before starting the fieldwork ensures that all objectives, scope, resources, and methodologies are well-defined and agreed upon.
This preparation helps in aligning the engagement with the overall audit strategy and reduces the risk of scope changes or misalignments during fieldwork