Questions for the IIA CHAL QISA were updated on : Dec 01 ,2025
According to Maslow's hierarchy of needs theory, which of the following best describes a strategy
where a manager offers an assignment to a subordinate specifically to support his professional
growth and future advancement^
B
Explanation:
According to Maslow's hierarchy of needs theory, self-fulfillment or self-actualization represents the
highest level of human motivation, where an individual seeks to achieve personal growth,
professional development, and realization of their potential. Offering an assignment to a subordinate
to support their professional growth and future advancement aligns with this concept, as it helps the
individual achieve a sense of self-fulfillment.
Reference: Maslow's Hierarchy of Needs Theory
A chief audit executive (CAE) identifies that the internal audit activity lacks a necessary skill to
perform a management request for a consulting engagement. According to IIA guidance, which of
the following Is the most appropriate action the CAE should take regarding the request?
B
Explanation:
According to the IIA's Standards, specifically Standard 1210 - Proficiency, internal auditors must
possess the knowledge, skills, and other competencies needed to perform their individual
responsibilities. If the internal audit activity lacks the necessary skill set to conduct a requested
consulting engagement, the most appropriate action for the CAE is to decline the engagement
request. This ensures that the internal audit activity does not compromise the quality and
effectiveness of its services.
Reference: IIA Standard 1210 - Proficiency
An organization has a mature control environment but limited internal audit resources. Given this
scenario, on which of the following should the internal auditors focus their testing?
D
Explanation:
When internal audit resources are limited, it is crucial to focus on the most critical aspects of the
control environment. Preventive key controls are designed to prevent errors or irregularities from
occurring, which are essential for maintaining a strong control environment. Given the mature
control environment of the organization, prioritizing preventive key controls ensures that potential
issues are addressed before they materialize, providing a proactive approach to risk management.
Reference: IIA Practice Guide "Assessing the Adequacy of Internal Controls"
During a payroll audit, the internal auditor discovered that several individuals who have the same
position classification as the are earning a significantly higher salary. The auditor noted the names
and amounts of each; and he planned to prepare a request to the chief audit executive for a salary
Increase based on this Information. Which of the following IIA Code of Ethics principles was violated
in this scenario?
B
Explanation:
When internal audit resources are limited, it is crucial to focus on the most critical aspects of the
control environment. Preventive key controls are designed to prevent errors or irregularities from
occurring, which are essential for maintaining a strong control environment. Given the mature
control environment of the organization, prioritizing preventive key controls ensures that potential
issues are addressed before they materialize, providing a proactive approach to risk management.
Reference: IIA Practice Guide "Assessing the Adequacy of Internal Controls"
Which of the following situations is most likely to heighten an internal auditors professional
skepticism regarding potential fraud?
A
Explanation:
Professional skepticism is an essential attitude for internal auditors, particularly when assessing the
risk of fraud. According to the IIA's Practice Guide "Internal Auditing and Fraud", one of the red flags
that may heighten an internal auditor’s professional skepticism is the presence of employees whose
qualifications or credentials do not match the requirements of their positions. In this case, a
procurement manager lacking the expected academic credentials raises concerns because it could
indicate potential fraudulent activities such as unqualified decision-making or manipulation of
procurement processes.
Reference: IIA Practice Guide "Internal Auditing and Fraud"
According to IIA guidance, which of the following statements is true regarding reporting the results of
the quality assurance and improvement program?
D
Explanation:
The IIA's International Standards for the Professional Practice of Internal Auditing (Standards)
provide guidance on the reporting requirements of the quality assurance and improvement program.
According to Standard 1320, "The chief audit executive must communicate the results of the quality
assurance and improvement program to senior management and the board." This communication
must include the results of both internal and external assessments and ongoing monitoring.
Specifically, the results of ongoing monitoring of the internal audit activity’s performance should be
reported to senior management and the board at least annually. This ensures that the internal audit
activity maintains its proficiency, enhances its effectiveness, and complies with the Standards.
Reference: IIA Standard 1320
An organization uses the management-by-objectives method, whereby employee performance is
based on defined goals. Which of the following statements is true regarding this approach?
C
Explanation:
Management-by-Objectives (MBO): This method involves setting clear, measurable objectives that
employees and management agree on. It aligns individual performance with organizational goals.
Inclusive Goal-Setting: When goal-setting is inclusive, involving all team members, it fosters a sense
of ownership and commitment to the goals. This collaboration enhances motivation and
accountability.
Empirical Evidence: Research and practical experience indicate that MBO is more effective when
employees at all levels are involved in the goal-setting process, as it leads to better performance and
job satisfaction.
IIA Standards and Best Practices: Encouraging participation from all levels aligns with the principles
of good governance and effective management, which are central to the IIA's standards and best
practices.
Reference:
Principles of Management-by-Objectives (MBO) .
Which of the following activities would an internal auditor perform as a consulting engagement for
an organization?
C
Explanation:
Consulting Engagements: Consulting engagements are advisory in nature and are intended to add
value and improve an organization’s governance, risk management, and control processes.
Role of Internal Auditor: In a consulting role, an internal auditor provides advice, facilitates risk
management, and helps enhance the efficiency and effectiveness of operations.
Briefing Managers: By briefing department managers on how to implement risk management
processes into their daily operations, the internal auditor is providing valuable advice that can help
improve the organization's risk management framework.
IIA Standards: The IIA’s standards emphasize that consulting activities should aim at improving
governance, risk management, and control processes without taking on management
responsibilities.
Reference:
IIA Standard 2010 – Planning .
The internal audit activity is planning an assurance engagement for a foreign subsidiary. According to
IIA guidance, which of the following would be included in the preliminary communication to
management of the area under review?
A
Explanation:
Preliminary Communication: Preliminary communication to management of the area under review is
essential in setting clear expectations and ensuring transparency regarding the upcoming audit.
Key Elements to Include:
Scope of the Engagement: Define what will be covered in the audit to ensure that management
understands the focus areas and objectives.
Estimated Time Frame: Provide a timeline for the audit activities, including the start and end dates,
to help management plan and allocate resources accordingly.
Names of the Auditors: Identify the auditors involved to facilitate communication and coordination
with the audit team.
IIA Guidance: According to the IIA standards, communicating these elements helps in building a
cooperative relationship and ensures that there are no misunderstandings regarding the audit
process.
Reference:
IIA Standard 2201 – Planning Considerations .
Which of the following statements is most accurate with respect to the required elements of the
quality assurance and improvement program?
B
Explanation:
Understanding Quality Assessments: Quality assessments in internal audit activities are designed to
evaluate various aspects such as the structure of the internal audit activity, relationships with
stakeholders, compliance with the IIA Standards, and the proficiency of internal audit staff.
Internal Assessments: These include ongoing monitoring of the performance of the internal audit
activity and periodic self-assessments or assessments by other persons within the organization with
sufficient knowledge of internal audit practices.
External Assessments: External assessments should be conducted at least once every five years by a
qualified, independent assessor or assessment team from outside the organization to ensure
objectivity and comprehensiveness.
Focus Areas: Quality assessments should focus on compliance with the IIA Standards, the
effectiveness of the internal audit activity's structure, the quality of relationships with stakeholders,
and the proficiency and continuous professional development of internal audit staff.
Continuous Improvement: The quality assurance and improvement program (QAIP) should be
designed to enable the internal audit activity to add value and improve an organization's operations.
It helps ensure that the internal audit activity is in compliance with the IIA Standards and Code of
Ethics and continuously improves.
Reference:
IIA Standard 1300 – Quality Assurance and Improvement Program .
According to IIA guidance, which of the following actions by the chief audit executive would best
ensure that internal auditors demonstrate due professional care?
A
Explanation:
Professional Care: Ensuring that internal auditors demonstrate due professional care involves
establishing clear policies and procedures that guide their activities.
Guidance and Standards: These policies and procedures help ensure that the internal audit activity
adheres to professional standards and best practices.
Standard Compliance: According to the IIA’s Performance Standard 2040 – Policies and Procedures,
the CAE must establish policies and procedures to guide the internal audit activity.
Quality Assurance: Properly developed policies and procedures contribute to the overall quality and
effectiveness of the internal audit activity, ensuring that engagements are conducted with due
professional care.
Reference:
IIA Standard 2040 – Policies and Procedures .
During an assurance engagement an internal auditor uses benchmarking research to support
preparation of a report to stakeholders that contains significant findings about control deficiencies.
Which of the following skills did the auditor demonstrate?
C
Explanation:
Benchmarking Research: Utilizing benchmarking research to support the preparation of a report
demonstrates the auditor’s ability to analyze data, compare performance, and identify control
deficiencies.
Critical Thinking: This skill involves evaluating and interpreting data to make informed judgments and
recommendations, which is essential for identifying significant findings and control deficiencies.
Application in Auditing: Critical thinking helps auditors assess the effectiveness of controls and
develop recommendations based on evidence and comparative analysis.
Reference:
The role of critical thinking in internal auditing as emphasized by the IIA .
Which of the following would be considered a violation of The IIA’s mandatory guidance on
independence?
B
Explanation:
Independence Requirement: The IIA's mandatory guidance emphasizes the importance of the CAE's
independence to ensure unbiased internal audit activities.
Conflict of Interest: Seeking senior management’s recommendation for the CAE’s salary adjustment
can create a conflict of interest and potentially compromise the CAE’s independence.
Best Practices: To maintain independence, the CAE’s compensation should be determined by the
board without influence from senior management.
Standard Compliance: According to the IIA's Attribute Standard 1110 – Organizational Independence,
the CAE must report to a level within the organization that allows the internal audit activity to fulfill
its responsibilities.
Reference:
IIA Standard 1110 – Organizational Independence .
The internal audit activity is asked to review the effectiveness of controls around the disposal of
chemical waste. However, the internal auditors on staff lack the necessary skills to conduct this
review Which of the following would be the most appropriate approach?
B
Explanation:
Skill Gap Identification: Internal auditors lack the necessary expertise in chemical waste disposal.
Consulting Experts: Engaging an external nonaudit expert ensures that the internal audit team
receives the necessary technical knowledge to conduct an effective review.
Team Assembly: By assembling a team of internal auditors and consulting an external expert, the
organization leverages both internal audit capabilities and external technical expertise.
Ensuring Competence: This approach ensures that the internal audit activity complies with the IIA
Standards, specifically Standard 1210 – Proficiency, which requires internal auditors to possess the
knowledge, skills, and other competencies needed to perform their responsibilities.
Reference:
IIA Standard 1210 – Proficiency .
Which of the following resources would be most effective for an organization that would like to
improve how it informs stakeholders of its social responsibility performance?
B
Explanation:
Understanding the GRI: The Global Reporting Initiative (GRI) provides a comprehensive framework
for reporting on sustainability performance, including social responsibility aspects.
Framework and Standards: GRI standards are widely used and recognized globally, which helps
organizations benchmark their performance against other entities using the same framework.
Stakeholder Communication: The GRI framework emphasizes transparency and accountability in
reporting, making it an effective tool for informing stakeholders about an organization's social
responsibility performance.
Comprehensive Coverage: GRI covers various aspects of social responsibility, including economic,
environmental, and social impacts, providing a holistic view of an organization's performance.
Reference:
The Global Reporting Initiative (GRI) .