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ACCA CIA Challenge Exam

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Question # 51

Which of the following is least likely to help ensure that risk is considered in a work program?

Options:

A.  

Risks are discussed with audit client.

B.  

All available information from the risk-based plan is used.

C.  

Client efforts to affect risk management are considered.

D.  

Prior risk assessments are considered.

Discussion 0
Question # 52

An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between 6 and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. What is the most appropriate course of action for the chief audit executive to take?

Options:

A.  

Assess the status of corrective action during a follow-up audit engagement after the action plan has been completed.

B.  

Assess the effectiveness of corrections by reviewing statistics related to unplanned system outages, and denials of service.

C.  

Reassign information systems auditors to assist in implementing management's action plan.

D.  

Evaluate the ability of the action plan to correct the weaknesses and monitor key dates and deliverables.

Discussion 0
Question # 53

A draft internal audit report that cites deficient conditions generally should be reviewed with which of the following groups?

1. The client manager and her superior.

2. Anyone who may object to the report’s validity.

3. Anyone required to take action.

4. The same individuals who receive the final report.

Options:

A.  

1 only

B.  

1 and 2 only

C.  

1, 2, and 3

D.  

1, 2, and 4

Discussion 0
Question # 54

A large retail organization, which sells most of its products online, experiences a computer hacking incident. The chief IT officer immediately investigates the incident and concludes that the attempt was not successful. The chief audit executive (CAE) learns of the attack in a casual conversation with an IT auditor. Which of the following actions should the CAE take?

1. Meet with the chief IT officer to discuss the report and control improvements that will be implemented as a result of the security breach, if any.

2. Immediately inform the chair of the audit committee of the security breach, because thus far only the chief IT officer is aware of the incident.

3. Meet with the IT auditor to develop an appropriate audit program to review the organization's Internet-based sales process and key controls.

4. Include the incident in the next quarterly report to the audit committee.

Options:

A.  

1 and 2

B.  

1 and 3

C.  

2 and 4

D.  

3 and 4

Discussion 0
Question # 55

According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

Options:

A.  

Communication of any internal ethics violations to external parties may occur with appropriate safeguards.

B.  

Cultural impacts are less critical where the organization practices uniform polices around the globe.

C.  

Cross-cultural differences should always be handled by the staff of the same cultural background.

D.  

Local law enforcement should be involved as they are more familiar with the applicable local laws.

Discussion 0
Question # 56

According to IIA guidance, which of the following statements is true regarding the authority of the chief audit executive (CAE) to release previous audit reports to outside parties?

Options:

A.  

The CAE can release prior internal audit reports with the approval of the board and senior management.

B.  

The CAE can employ judgment and release prior audit results as they deem appropriate and necessary.

C.  

The CAE can only release prior information outside the organization when mandated by legal or statutory requirements.

D.  

The CAE can release prior information provided it is as originally published and distributed within the organization.

Discussion 0
Question # 57

The chief audit executive of a medium-sized financial institution is evaluating the staffing model of the internal audit activity (IAA). According to IIA guidance, which of the following are the most appropriate strategies to maximize the value of the current IAA resources?

• The annual audit plan should include audits that are consistent with the skills of the IA

A.  

• Audits of high-risk areas of the organization should be conducted by internal audit staff.

• External resources may be hired to provide subject-matter expertise but should be supervised.

• Auditors should develop their skills by being assigned to complex audits for learning opportunities.

Options:

A.  

1 and 2 only

B.  

1 and 4 only

C.  

2 and 3 only

D.  

3 and 4 only

Discussion 0
Question # 58

According to IIA guidance, which of the following is true regarding the exit conference for an internal audit engagement?

Options:

A.  

A primary purpose of the exit conference is to provide for the timely communication of observations that call for immediate management action.

B.  

Both the chief audit executive and the chief executive over the activity or function reviewed must attend the exit conference to validate the findings.

C.  

The exit conference provides only anticipated results for inclusion in the final audit communication.

D.  

During the exit conference, the performance of the internal auditors who executed the engagement is reviewed.

Discussion 0
Question # 59

Which of the following is the most important concept to be included in a consulting engagement agreement?

Options:

A.  

Define the duties and responsibilities needed from management to perform the engagement.

B.  

Disclose the fact that auditors who perform the work may not be subject matter experts in the topic of the review.

C.  

Clarify that matters discovered during the engagement may also be reported to senior management and the audit committee.

D.  

Disclose the fact that follow-up reviews may be conducted to ensure that recommendations are implemented adequately.

Discussion 0
Question # 60

Which of the following has the greatest effect on the efficiency of an audit?

Options:

A.  

The complexity of deficiency findings.

B.  

The adequacy of preliminary survey information.

C.  

The organization and content of workpapers.

D.  

The method and amount of supporting detail used for the audit report.

Discussion 0
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