Part 1 Sample Exam Question
According to IIA guidance, independence of the internal audit activity is achieved through which of the following?
A. Staffing and supervision.
B. Continuing professional development and due professional care.
C. Human relations and communications.
D. Organizational status and objectivity.
A. Incorrect. Staffing and supervision relate to the professional proficiency of the internal audit activity.
B. Incorrect. Continuing professional development and due professional care relate to the professional proficiency of the internal auditor.
C. Incorrect. Human relations and communications relate to the professional proficiency of the internal auditor.
D. Correct. According to Practice Advisory 1110-1, organizational status and objectivity permit members of the internal audit activity to render the impartial and unbiased judgments essential to the proper conduct of engagements.”
Part 2 Sample Exam Question
Considering the differences between statistical and judgmental sampling, which of the following statements about statistical sampling is true?
A. No judgment is required, because everything is computed according to a formula.
B. A smaller sample can be used.
C. More accurate results are obtained.
D. Population estimates can be made with measurable reliability.
A. Incorrect. Judgment is needed for confidence levels and sample unit definition.
B. Incorrect. A statistical sample may result in either a smaller or larger sample.
C. Incorrect. There is no way to determine which method would produce greater accuracy.
D. Correct. The only way to have measured reliability (stated in terms of confidence intervals) is to use a statistical sample.
Part 3 Sample Exam Question
Which of the following is the best strategy for limiting production delays caused by equipment breakdown and repair?
A. Schedule production based on capacity planning.
B. Plan maintenance activity based on an analysis of equipment repair work orders.
C. Preauthorize equipment maintenance and overtime pay.
D. Establish a preventive maintenance program for all production equipment.
A. Incorrect. Scheduling production based on capacity utilization ignores other important factors such as demands.
B. Incorrect. Budgeting maintenance department activities based on previous work orders will not prevent equipment breakdowns and repairs.
C. Incorrect. Standing authorizations of work orders and overtime will not address the problem posed.
D. Correct. A preventive maintenance program will reduce equipment breakdowns and repairs.