QUESTION: 37

According to Herzberg's Two-Factor Theory of Motivation, which of the following factors are mentioned most often by satisfied employees9

Salary and status.
Responsibility and advancement
Work conditions and security.
Peer relationships and personal life

Answer(s): B

Explanation:

Herzberg's Two-Factor Theory, also known as the Motivation-Hygiene Theory, distinguishes between motivators and hygiene factors. Motivators, which are related to job content, lead to higher job satisfaction and are intrinsic factors such as achievement, recognition, responsibility, and advancement. In contrast, hygiene factors, which are related to job context (e.g., salary, status, work conditions), do not lead to higher satisfaction but can cause dissatisfaction if missing.

Reference:

Herzberg's research indicated that motivators like responsibility and advancement are more frequently mentioned by employees as sources of job satisfaction compared to hygiene factors like salary and status.

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QUESTION: 38

Which of the following is most likely to be considered a control weakness?

Vendor invoice payment requests are accompanied by a purchase order and receiving report.
Purchase orders are typed by the purchasing department using prenumbered forms
Buyers promptly update the official vendor listing as new supplier sources become known.
Department managers initiate purchase requests that must be approved by the plant superintendent

Answer(s): C

Explanation:

A control weakness occurs when there is a deficiency in internal controls that could allow errors or fraud to occur.
While the act of buyers promptly updating the vendor listing might seem efficient, it could bypass necessary oversight and approval processes. This could lead to unauthorized or inappropriate vendors being added, increasing the risk of fraud or favoritism. Effective internal control requires that such updates be reviewed and approved by an independent party to ensure accuracy and appropriateness.

Reference:

Best practices in internal control recommend segregation of duties and independent review processes to prevent unauthorized changes and ensure control integrity.

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QUESTION: 39

When determining the level of staff and resources to be dedicated to an assurance engagement, which of the following would be the most relevant to the chief audit executive?

The overall adequacy of the internal audit activity's resources
The availability of guest auditors for the engagement
The number of internal auditors used for the previous review of the same area.
The available resources with the specific skill set required

Answer(s): D

Explanation:

When determining the level of staff and resources to dedicate to an assurance engagement, the most critical factor for the chief audit executive (CAE) is ensuring that the available resources possess the specific skill sets required for the engagement. This ensures that the internal audit team can effectively address the unique challenges and risks associated with the audit. Skill Set Relevance: The CAE must match the skills and knowledge of the audit team to the specific requirements of the audit engagement. This includes technical expertise, industry knowledge, and any specialized skills needed for the audit.
Resource Allocation: Effective allocation involves not just the number of auditors but ensuring they have the right competencies to perform the audit tasks proficiently. Impact on Audit Quality: Allocating resources with the appropriate skill set ensures the audit is thorough and of high quality, reducing the risk of overlooking critical issues.

Reference:

"Managing Internal Audit Activities," which discusses the importance of aligning audit resources with the necessary skills for specific engagements .

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QUESTION: 40

Which of the following activities demonstrates an example of the chief audit executive performing residual risk assessment?

Cost-benefit analysis of management not implementing a recommendation to address an observation.
Inquiry of corrective action to be completed within a certain period
Reporting the status of every observation for every engagement in a detailed manner.
Soliciting management's feedback after completion of the audit engagement.

Answer(s): A

Explanation:

Performing a cost-benefit analysis when management decides not to implement a recommendation is a prime example of residual risk assessment. This involves evaluating the potential impacts and remaining risks associated with the decision, thereby determining the residual risk that the organization will continue to face.
Cost-Benefit Analysis: This helps in understanding the financial implications and benefits that would have been realized had the recommendation been implemented versus the risks of not implementing it.

Risk Assessment: By assessing the residual risk, the CAE can provide a clearer picture of the ongoing risks that the organization needs to manage.
Management Decision Impact: This analysis assists in making informed decisions and understanding the trade-offs involved in addressing audit observations.

Reference:

"Audit and Assurance Services: An Integrated Approach," which explains residual risk assessment and the importance of cost-benefit analysis in audit recommendations .

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Free IIA-CHAL-QISA Exam Braindumps (page: 10)

QUESTION: 37

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QUESTION: 38

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QUESTION: 39

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QUESTION: 40

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