How often Reporting lines, independence and the audit committee is asked

Where it was asked

What costs marks here

The questions

1. May/Jun 2017, Q1.61.5 marks · multiple choice

   This is a multiple-choice question worth 18 marks in total. For each of the twelve subsections below, you must select the single alternative you regard as most correct, then write down the subsection number together with the letter preceding your chosen alternative (for example: 1.1 A, 1.2 B). Each subsection is worth one and a half (1½) marks and subsections must be answered in numerical order. What is the most important benefit that the audit committee provides to the internal auditor? It is to:

2. May/Jun 2017, Q1.71.5 marks · multiple choice

   This is a multiple-choice question worth 18 marks in total. For each of the twelve subsections below, you must select the single alternative you regard as most correct, then write down the subsection number together with the letter preceding your chosen alternative (for example: 1.1 A, 1.2 B). Each subsection is worth one and a half (1½) marks and subsections must be answered in numerical order. Choose the alternative that correctly completes the following sentence: the fact that internal auditors customarily have a dual relationship with executive management and the audit committee means that:

3. May/Jun 2017, Q2.13 marks

   Dreams Discovered Ltd is a company that manufactures and sells children's toys. You have just been appointed as the new Chief Audit Executive (CAE) for the company's newly established internal audit activity. Currently, the board and the Chief Executive Officer (CEO) cannot agree on who the CAE should report to, and they have asked you for your guidance on this matter. As the newly appointed CAE of Dreams Discovered Ltd, discuss the advantages and disadvantages of the CAE reporting to the Audit Committee.

4. May/Jun 2017, Q2.23 marks

   Dreams Discovered Ltd is a company that manufactures and sells children's toys. You have just been appointed as the new Chief Audit Executive (CAE) for the company's newly established internal audit activity. Currently, the board and the Chief Executive Officer (CEO) cannot agree on who the CAE should report to, and they have asked you for your guidance on this matter. As the newly appointed CAE of Dreams Discovered Ltd, discuss the advantages and disadvantages of the CAE reporting to the Chief Executive Officer (CEO) instead.

5. May/Jun 2017, Q2.34 marks

   Dreams Discovered Ltd is a company that manufactures and sells children's toys. You have just been appointed as the new Chief Audit Executive (CAE) for the company's newly established internal audit activity. Currently, the board and the Chief Executive Officer (CEO) cannot agree on who the CAE should report to, and they have asked you for your guidance on this matter. With reference to the IIA Standards, recommend which type of reporting line (to the Audit Committee or to the CEO) is preferred in order to preserve the independence of the internal audit activity at Dreams Discovered Ltd.

6. May/Jun 2016, Q1.61.5 marks · multiple choice

   This multiple-choice question requires you to select, for each numbered subsection, the single alternative you regard as most correct, and to write down the subsection number together with the letter of your chosen answer, answering the subsections in numerical order (for example 1.1 A, 1.2 B). Each of the fourteen subsections counts 1½ marks. Determine the most important benefit that the audit committee provides to the internal auditor, choosing from: protecting the independence of the internal auditor from undue management influence; reviewing annual audit plans and monitoring audit results; approving audit plans and scheduling meetings with the internal auditor; or reviewing copies of the procedure manuals for selected company operations and discussing such manuals with a company official.

7. Oct/Nov 2013, Q1.11.5 marks · multiple choice

   For each part of this multiple-choice question, choose only the one alternative you consider most correct. Write down the sub-question number followed by the letter of the alternative you selected, and answer the parts in numerical order, for example 1.1 A, 1.2 B. Each part counts 1½ marks. (Questions adapted from Vallabhaneni: CIA Exam Review.) During an internal audit review of the organisation's accounts payable function, an internal auditor plans to confirm balances with suppliers. What is the source of authority for such contact with parties outside the organisation?

8. Oct/Nov 2013, Q1.21.5 marks · multiple choice

   For each part of this multiple-choice question, choose only the one alternative you consider most correct. Write down the sub-question number followed by the letter of the alternative you selected, and answer the parts in numerical order, for example 1.1 A, 1.2 B. Each part counts 1½ marks. (Questions adapted from Vallabhaneni: CIA Exam Review.) Which of the following audit committee activities would be of the greatest benefit to the internal auditing department?

9. Oct/Nov 2013, Q1.71.5 marks · multiple choice

   For each part of this multiple-choice question, choose only the one alternative you consider most correct. Write down the sub-question number followed by the letter of the alternative you selected, and answer the parts in numerical order, for example 1.1 A, 1.2 B. Each part counts 1½ marks. (Questions adapted from Vallabhaneni: CIA Exam Review.) Which one of the following provisions should be excluded from the internal audit charter?

10. Oct/Nov 2012, Q1.11.5 marks · multiple choice

    For this question on internal auditing, choose the one alternative you consider most correct for each of the ten subsections listed below. Write down the subsection number together with the letter of your chosen alternative (for example 1.1 A, 1.2 B), answering the subsections in numerical order. Each subsection counts 1½ marks. (Questions adapted from Vallabhaneni: CIA Exam Review) Select the alternative that correctly completes this statement: the fact that internal auditors customarily have a dual relationship with executive management and the audit committee means that...

11. Oct/Nov 2012, Q1.61.5 marks · multiple choice

    For this question on internal auditing, choose the one alternative you consider most correct for each of the ten subsections listed below. Write down the subsection number together with the letter of your chosen alternative (for example 1.1 A, 1.2 B), answering the subsections in numerical order. Each subsection counts 1½ marks. (Questions adapted from Vallabhaneni: CIA Exam Review) Identify the most important benefit provided by the audit committee to the internal auditor.

12. Oct/Nov 2012, Q3.13 marks

    Dreams Discovered Ltd is a company that manufactures and sells children's toys. You have just been appointed as the Chief Audit Executive (CAE) of the company's newly established internal audit activity. A disagreement has arisen between the board and the Chief Executive Officer (CEO) as to which of them the CAE should report to, and they have asked you to advise them on this matter. As the newly appointed CAE of Dreams Discovered Ltd, discuss the benefits and drawbacks of having the CAE report to the Audit Committee.

13. Oct/Nov 2012, Q3.23 marks

    Dreams Discovered Ltd is a company that manufactures and sells children's toys. You have just been appointed as the Chief Audit Executive (CAE) of the company's newly established internal audit activity. A disagreement has arisen between the board and the Chief Executive Officer (CEO) as to which of them the CAE should report to, and they have asked you to advise them on this matter. As the newly appointed CAE of Dreams Discovered Ltd, discuss the benefits and drawbacks of having the CAE report to the CEO instead.

14. Oct/Nov 2012, Q3.34 marks

    Dreams Discovered Ltd is a company that manufactures and sells children's toys. You have just been appointed as the Chief Audit Executive (CAE) of the company's newly established internal audit activity. A disagreement has arisen between the board and the Chief Executive Officer (CEO) as to which of them the CAE should report to, and they have asked you to advise them on this matter. Based on the guidance provided in the IIA Standards, recommend which type of reporting line for the CAE at Dreams Discovered Ltd would be preferred in order to safeguard independence.