IIA-CHAL-QISA Exam Dumps : Qualified Info Systems Auditor CIA Challenge Exam

Testing Valuation:The valuation of trading securities requires comparing their carrying value with current market prices to ensure accuracy.

Market Quotations:Current market quotations provide the most reliable and up-to-date information on the fair value of securities.

Accounting Standards:This approach is consistent with accounting standards that require securities to be reported at fair value, reflecting any unrealized gains or losses.

Verification Process:Comparing the carrying value with market quotations helps verify that the securities are appropriately valued on the financial statements.

References:

International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) regarding fair value measurement.

Self-assessment of controls can be efficiently conducted using various client-facilitated approaches. The choice of method depends on factors such as the size of the department, the nature of the controls, and the need for comprehensive feedback.

Efficiency in Large Groups:Surveys are particularly effective for large groups (such as a 200-person department) as they allow for the collection of data from many individuals quickly and efficiently.

Step by Step Comprehensive Detailed Explanation with References:

Introduction:

Internal auditors use process mapping to document and understand the steps involved in a process.

Purpose of Narrative Memoranda:

Narrative memoranda are written descriptions that outline the steps of a process, often used when the process is straightforward.

Options Analysis:

Option A: Detailed risk assessment is usually more comprehensive and may require flowcharts or other detailed diagrams.

Option B: Identifying individuals who perform key roles typically requires organization charts or responsibility matrices.

Option C: Narrative memoranda are best suited for explaining simple processes in a clear and concise manner.

Option D: Documenting outputs that support other activities might require more detailed mapping techniques.

Conclusion:

Narrative memoranda are effective for explaining simple processes, providing a straightforward and understandable framework.