IIA IIA-CHAL-QISA Exam With Confidence Using Practice Dumps

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.

Introduction:

Understanding cost behavior is crucial in managing production and financial performance in manufacturing.

Cost Characteristics:

Fixed costs remain constant in total but vary per unit with changes in production volume.

Variable costs vary directly with production volume but remain constant per unit.

Options Analysis:

Option A: Variable costs per unit remain constant regardless of production volume.

Option B: Fixed costs per unit decrease as production volume increases, not directly.

Option C: Total variable costs vary directly with production volume, not inversely.

Option D: Fixed costs per unit will decline as the number of units produced increases due to the spreading of fixed costs over a larger number of units.

Conclusion:

When production increases by 30%, the fixed cost per unit will decline as the same total fixed cost is allocated over a greater number of units.

Assigning a junior auditor to complete a complex part of an audit engagement can be a strategic decision aimed at providing the junior auditor with valuable experience. This exposure to complex tasks helps in their professional development, building their skills and knowledge for future responsibilities. Although tight deadlines or the unavailability of senior auditors might be factors, the primary reason is often to enhance the junior auditor's competence and career growth.