Master IIA-IAP Exam with Reliable Practice Questions
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Which of the following creates an opportunity for an employee to commit fraud?
Correct : A
Comprehensive and Detailed Step-by-Step Explanation:
Opportunity: In the Fraud Triangle, 'opportunity' refers to the ability to commit fraud due to weaknesses in internal controls, such as poor segregation of duties, lack of oversight, or inadequate monitoring systems. These factors are directly within the organization's control to address.
Other Options:
Unfair Compensation Practices (B): This may contribute to 'pressure,' not opportunity.
The Need for Money (C): Represents 'pressure' due to personal financial issues.
Thus, the correct answer is A. Lack of adequate internal controls.
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Which of the following elements are typically included in an engagement work program?
Correct : A
Comprehensive and Detailed Step-by-Step Explanation:
Engagement Work Program: A structured plan detailing the steps to achieve engagement objectives. The program typically includes planning activities, objectives, and preliminary risk assessments to guide the audit.
Other Options:
Option B: Fieldwork and testing are performed during the execution phase but are not part of the program's creation.
Option C: Opinions and final communications are outputs of the audit, not components of the work program.
Thus, the correct answer is A.
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According to IIA guidance, which one of the following hiring strategies is most appropriate to fill internal audit positions?
Correct : B
Comprehensive and Detailed Step-by-Step Explanation:
Skills-Based Recruitment: Internal audit activities require diverse skills to handle complex audits. Recruiting candidates based on the skills needed ensures the internal audit activity can fulfill its mandate effectively.
Other Options:
Option A: Focusing solely on numbers may lead to skill gaps.
Option C: Competency assessment is part of the process but should align with overall skills requirements, not just upcoming audits.
Thus, the correct answer is B.
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Which of the following is an advantage of communicating audit observations as they are identified?
Correct : A
Comprehensive and Detailed Step-by-Step Explanation:
Real-Time Communication: Sharing audit observations promptly allows management to provide additional documentation or clarifications that could affect findings or conclusions.
Other Options:
Option B: Final results are still communicated to the board to fulfill reporting requirements.
Option C: While observations may indirectly inform future planning, this is not the primary advantage of real-time communication.
Thus, the correct answer is A.
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Which of the following actions could the chief audit executive take to most directly support the requirement that internal auditors maintain proficiency?
Correct : B
Comprehensive and Detailed Step-by-Step Explanation:
Training and Mentoring: Offering continuous training and mentoring ensures auditors enhance their skills and maintain proficiency, aligning with IIA Standard 1230: Continuing Professional Development.
Other Options:
Option A: Developing a risk-based plan is crucial but does not directly address auditor proficiency.
Option C: Defining the internal audit activity's mandate does not directly enhance individual proficiency.
Thus, the correct answer is B.
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