IIA IIA-CIA-Part2 Practice Test - Questions Answers, Page 37

During an engagement in one of the subsidiaries of an organization, an internal auditor noted the following in the workpapers:

'As a subsidiary of a multinational organization in this particular country, the entity is required to register annually with the respective ministry. However, the subsidiary did not submit the required documentation for registration during the prior year. Failure to comply with internal and external regulations could lead to penalties or fines from the respective authorities. It is recommended that the management of the subsidiary ensures compliance with the relevant legislation. As a recoverable action, management should register the subsidiary in the current year as soon as possible.'

What part of this narrative represents a condition of the observation made by auditors in the final report?

How should an internal auditor approach preparing a detailed risk assessment during engagement planning?

An organization owns vehicles that are kept off-site by employees to pick up and deliver orders. An internal auditor selects a specific vehicle from the fixed asset register for testing. Which of the following would best provide sufficient, indirect evidence for the auditor to confirm the existence of the vehicle?

An internal audit report includes a recommendation to remove inappropriate user access to an IT application. Which of the following does the recommendation represent?

An internal auditor used a risk and control matrix to prepare a work program for testing a software release. During the engagement planning stage, he tested the design of the release procedure as a key control and concluded that the control was not designed well. During the performance stage, he tested the operation of this control and concluded that it was implemented as designed. Which of the following statements is true regarding this scenario?

According to the Standards, which of the following is true regarding the auditor's inclusion of management's satisfactory performance in the final audit report?

After completing an assurance engagement, the chief audit executive (CAE) concludes that management has accepted a level of risk that may be unacceptable to the organization. What is the most appropriate first step for the CAE to take?

During an entity-level controls assessment, internal auditors deploy an internal control questionnaire to test the controls. Which of the following is a major drawback of this testing method?

During the preliminary survey of the procurement department, an internal auditor noted a major control weakness in the organization's ordering and receiving process. According to IIA guidance, which of the following is the most appropriate action the internal auditor should take?