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Exam Code: QIA
Exam Name: Qualified Internal Auditor
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IQN QIA Practice Exam 80 Q&As
Updated: 2014-10-13
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NO.1 Reporting to senior management and the board is an important part of the auditor's
obligation.
Which of the following items is not required to be reported to senior management and/or the board?
A. Subsequent to the completion of an audit, but prior to the issuance of an audit report, the audit
senior in charge of the audit was offered a permanent position in the auditee's department.
B. An annual report summary of the department's audit work schedule and financial budget.
C. Significant interim changes to the approved audit work schedule and financial budget.
D. An audit plan was approved by senior management and the board. Subsequent to the approval,
senior management informed the audit director not to perform an audit of a division because the
division's activities were very sensitive.
Answer: A

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NO.2 The control self-assessment (CSA) is a
A. Directive auditing tool.
B. Preventive auditing tool.
C. Detective auditing tool.
D. Corrective auditing tool.
Answer: B

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NO.3 The requirements for staffing level, education and training, and audit research should be
included in
A. The internal auditing department's charter.
B. The internal auditing department's policies and procedures manual.
C. The annual plan for the internal auditing department.
D. Job descriptions for the various staff positions.
Answer: C

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NO.4 During the audit of inventories, an internal auditor specified a precision of 5% instead of the
4% contained in the preliminary audit program.
What would be the impact of the change in precision?
A. A decrease in population standard deviation.
B. An increase in population standard deviation.
C. A decrease in required sample size
D. An increase in required sample size
Answer: C

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NO.5 How does CSA differ from traditional methods of auditing?
A. Shifts some of the responsibilities away from the auditors towards others such as work teams.
B. Allocated additional responsibilities to internal audit.
C. Reduces the level of collaboration required between managers and internal auditor.
D. Allows assessment to be carried out without any internal audit involvement whatsoever,
therefore allowing them to focus their attention on other areas of theorganization.
Answer: A

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NO.6 To test compliance with a policy regarding sales returns recorded during the most recent year,
an auditor systematically selected 5% of the actual returns recorded in March and April. Returns
during these two busiest months of the year represented about 25% of total annual returns.
Error projections from this sample have limited usefulness because
A. The small size of the sample relative to the population makes sampling risk unacceptable.
B. The failure to stratify the population according to sales volume results in bias.
C. The systematic selection of returns during the two months is not sufficiently random.
D. The error rates during the two busiest months may not be representative of the whole year.
Answer: D

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NO.7 Audits vary in their degree of objectivity. Of the following, which is likely to be the most
objective?
A. Compliance audit of company's overtime policy.
B. Operational audit of the personnel function hiring and firing procedures.
C. Performance audit of the marketing department.
D. Financial control audit over payroll procedures.
Answer: A

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NO.8 A personnel department is responsible for processing placement agency fees for new hires. A
recruiter established some bogus placement agencies and, when interviewing walk-in applicants,
the recruiter would list one of the bogus agencies as referring the candidate.
A possible means of detection or deterrence is to
A. Process all personnel agency invoices via a purchase order through the purchasing department.
B. Verify new vendors to firms listed in a professional association catalogue and/or verify the vendor
name and address through the telephone book.
C. Monitor the closeness of the relationships of recruiters with specific vendors.
D. Require all employees to sign an annual conflict of interest statement.
Answer: B

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