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IIA Practice of Internal Auditing Sample Questions (Q579-Q584):

NEW QUESTION # 579
Which of the following best describes the engagement objective in a banking compliance audit?

A. Assessing whether the business continuity plans implement regulatory requirements
B. Assessing whether the business continuity plans implement best practice recommendations
C. Assessing the cost-efficiency of business continuity plans
D. Assessing the operating effectiveness of the business continuity plans

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
In a compliance audit, the objective is to assess adherence to laws, regulations, or regulatory requirements. For banking compliance, this means verifying whether business continuity plans comply with mandatory regulations (Option B). Options A, C, and D relate to efficiency, best practices, or operations - not compliance.

NEW QUESTION # 580
Controls are implemented to:

A. Mitigate risk and eliminate the potential for loss.
B. Eliminate risk and eliminate potential for loss.
C. Mitigate risk and reduce the potential for loss.
D. Eliminate risk and reduce the potential for loss.

Answer: C

NEW QUESTION # 581
An organization contracted a third party to construct a new facility that was estimated to cost $25 million. Which of the following is the most pertinent reason for the organization to audit the contractor's records?

A. The contractor has subcontracted much of the work.
B. The estimated cost is high.
C. The contractor will be paid on a cost-plus basis.
D. The contract includes a right-to-audit clause.

Answer: C

NEW QUESTION # 582
Which of the following is not a primary purpose for conducting a walk-through during the initial stages of an assurance engagement?

A. To test the adequacy of controls.
B. To determine segregation of duties.
C. To identify residual risks.
D. To help develop process maps.

Answer: A

NEW QUESTION # 583
During a systems development audit, software developers indicated that all programs were moved from the development environment to the production environment and then tested in the production environment. What should the auditor recommend?
1. Implement a test environment to ensure that testing is not performed in the production environment.
2. Require developers to move modified programs from the development environment to the test environment and from the test environment to the production environment.
3. Eliminate access by developers to the production environment.

A. I and III only
B. I and II only
C. I only
D. III only

Answer: A

NEW QUESTION # 584
......

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IIA Practice of Internal Auditing Sample Questions (Q579-Q584):

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