Download the latest IIA-IAP exam dumps for good preparation
Exam : IIA-IAP
Title : Internal Audit Practitioner
https://www.passcert.com/IIA-IAP.html
1/6
, Download the latest IIA-IAP exam dumps for good preparation
1.During which stage of an audit engagement would the engagement supervisor identify the tasks that
were already completed and the remaining tasks to be performed?
A. When allocating resources.
B. When developing the test approach.
C. When documenting the work program.
Answer: C
Explanation:
The engagement supervisor identifies tasks that are completed and remaining tasks during the process of
documenting the work program.
Reference to IIA Standards:
According to the IIA's Performance Standards 2200 - Engagement Planning, an internal audit work
program should detail the procedures necessary to achieve the engagement's objectives.
Standard 2240 - Engagement Work Program explicitly states that internal auditors must develop and
document work programs that achieve the objectives of the engagement.
Key Responsibilities:
Documenting the work program involves listing tasks already performed to avoid redundancy and tasks
remaining to ensure coverage of all planned activities.
Supervisors are responsible for overseeing this process and ensuring the work aligns with the overall
engagement plan.
Relevance to Audit Practice:
The work program serves as a roadmap for auditors, detailing specific steps to be taken.
Identifying completed and pending tasks ensures proper time management and resource allocation
during the engagement.
2.Which of the following is the best audit procedure to determine whether all of a bank's loans are backed
by sufficient collateral, properly aged as to current payments, and properly categorized as current or
noncurrent?
A. Use generalized audit software to read the total loan file, age the file by last payment due, and select a
statistical sample stratified by the current and aged population. Examine each loan selected for proper
collateralization and aging.
B. Select a block sample of all loans in excess of a specified dollar limit and determine whether they are
current and properly categorized. For each loan approved, verify aging and categorization.
C. Select a discovery sample of all loan applications to determine whether each application contains a
statement of collateral.
Answer: A
Explanation:
Reference to IIA Standards:
IIA Performance Standard 1220.A2: Internal auditors must consider using technology-based audit
techniques and other data analysis tools.
Performance Standard 2320 - Analysis and Evaluation: Sufficient and appropriate analysis should be
performed to achieve the engagement's objectives.
Best Audit Practice for the Scenario:
Option A involves using generalized audit software (GAS) to extract relevant data from the loan file and
stratify it based on specific criteria (e.g., age of loans, collateral backing). This ensures a statistically valid
2/6
Exam : IIA-IAP
Title : Internal Audit Practitioner
https://www.passcert.com/IIA-IAP.html
1/6
, Download the latest IIA-IAP exam dumps for good preparation
1.During which stage of an audit engagement would the engagement supervisor identify the tasks that
were already completed and the remaining tasks to be performed?
A. When allocating resources.
B. When developing the test approach.
C. When documenting the work program.
Answer: C
Explanation:
The engagement supervisor identifies tasks that are completed and remaining tasks during the process of
documenting the work program.
Reference to IIA Standards:
According to the IIA's Performance Standards 2200 - Engagement Planning, an internal audit work
program should detail the procedures necessary to achieve the engagement's objectives.
Standard 2240 - Engagement Work Program explicitly states that internal auditors must develop and
document work programs that achieve the objectives of the engagement.
Key Responsibilities:
Documenting the work program involves listing tasks already performed to avoid redundancy and tasks
remaining to ensure coverage of all planned activities.
Supervisors are responsible for overseeing this process and ensuring the work aligns with the overall
engagement plan.
Relevance to Audit Practice:
The work program serves as a roadmap for auditors, detailing specific steps to be taken.
Identifying completed and pending tasks ensures proper time management and resource allocation
during the engagement.
2.Which of the following is the best audit procedure to determine whether all of a bank's loans are backed
by sufficient collateral, properly aged as to current payments, and properly categorized as current or
noncurrent?
A. Use generalized audit software to read the total loan file, age the file by last payment due, and select a
statistical sample stratified by the current and aged population. Examine each loan selected for proper
collateralization and aging.
B. Select a block sample of all loans in excess of a specified dollar limit and determine whether they are
current and properly categorized. For each loan approved, verify aging and categorization.
C. Select a discovery sample of all loan applications to determine whether each application contains a
statement of collateral.
Answer: A
Explanation:
Reference to IIA Standards:
IIA Performance Standard 1220.A2: Internal auditors must consider using technology-based audit
techniques and other data analysis tools.
Performance Standard 2320 - Analysis and Evaluation: Sufficient and appropriate analysis should be
performed to achieve the engagement's objectives.
Best Audit Practice for the Scenario:
Option A involves using generalized audit software (GAS) to extract relevant data from the loan file and
stratify it based on specific criteria (e.g., age of loans, collateral backing). This ensures a statistically valid
2/6
