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IIA-CFSA Questions and Answers

Question # 1

Internal auditors, engaging in activities that are illegal and discreditable to the profession of internal auditing or the organization, violate which of the following principles:

A.

Objectivity

B.

Awareness

C.

Integrity

D.

Competence

Question # 2

Organization’s Objectives are described in three general categories:

A.

Effectiveness of operations, Efficiency of strategic plans, Reliability of internal and external reporting

B.

Effectiveness of operations, Efficiency of strategic plans, Reliability of internal and external reporting, compliance with applicable laws and regulations

C.

Effectiveness and Efficiency of operations, Compliance with applicable laws and regulations, Monitoring and management control system

D.

Effectiveness and Efficiency of operations, Reliability of internal and external reporting, Compliance with applicable laws and regulations

Question # 3

Which of the following steps is/are NOT considered in the audit planning process?

A.

Identifying what is to be audited?

B.

Assess risk and vulnerability

C.

Determine how to manage the risks

D.

Develop specific issues and Questions for the audit

Question # 4

Financial institutions regularly identify uncollectible accounts and charge them off against the reserve of:

A.

Unearned loan revenue

B.

Loan losses

C.

Loan expenses

D.

All of these

Question # 5

Risk is the probability that an event or action may adversely affect the organization or activity under review. In other words, risk is anything that can prevent an organization from achieving an objective. Major components of risk are as follows EXCEPT:

A.

Non- Compliance with the laws, rules and regulations

B.

An event or cause that can interfere with achieving the objective (e.g. What can go wrong?)

C.

A probability or likelihood of occurrence

D.

The negative consequences of not achieving the objective

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