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IIA Practice of Internal Auditing Sample Questions (Q496-Q501):

NEW QUESTION # 496
Which of the following is one of the differences between probability-proportional-to-size (PPS) and attribute sampling?

Answer: D

Explanation:
Probability-proportional-to-size (PPS) sampling is a technique used to reach conclusions regarding monetary amounts in a population. It is designed to handle variable sampling by focusing on monetary units, making it appropriate for testing account balances. On the other hand, attribute sampling is used to assess the rate of occurrence of a specific characteristic or attribute in a population, such as compliance with a control procedure, and does not focus on monetary amounts.
The Institute of Internal Auditors (IIA) Practice Guide on "Audit Sampling" Generally Accepted Auditing Standards (GAAS)


NEW QUESTION # 497
Which of the following would not include recommendations for process improvements?

Answer: B


NEW QUESTION # 498
An audit of a company's accounts payable found that the individuals responsible for maintaining the vendor master file could also enter vendor invoices into the accounts payable system. During the exit conference, management agreed to correct this problem. When performing a follow-up engagement of accounts payable, the auditor should expect to find that management has:

Answer: C


NEW QUESTION # 499
Which of the following best describes the four components of a balanced scorecard?

Answer: A

Explanation:
The balanced scorecard, introduced by Robert Kaplan and David Norton, includes four main components that provide a comprehensive view of an organization's performance. These components are:
* Financial Measures - to track financial success and shareholder value.
* Learning and Growth - to foster an environment of continuous improvement and innovation.
* Customers - to measure customer satisfaction and market share goals.
* Internal Processes - to ensure that critical operations and business processes are running efficiently.
These elements together help an organization balance short-term objectives with long-term goals.
References:
* Kaplan, R.S., & Norton, D.P. (1996). The Balanced Scorecard: Translating Strategy into Action.


NEW QUESTION # 500
During a consulting engagement an internal auditor wants to determine whether all principal stakeholders are involved in a project. Which tool should the auditor use?

Answer: C

Explanation:
A RACI (responsible, accountable, consult, and inform) chart is the tool that an internal auditor should use to determine whether all principal stakeholders are involved in a project. A RACI chart clearly defines roles and responsibilities for each task or deliverable in a project, ensuring that all necessary stakeholders are identified and their involvement is appropriately documented.
Reference:
IIA Practice Guide: Auditing Project Management Activities
IIA Standards: 2201 - Planning Considerations


NEW QUESTION # 501
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