Home / IIA / IIA-CIA-Part2

IIA IIA-CIA-Part2 Practice Test - Questions Answers, Page 38

Question list

List of questions

Question 371

(0)

An internal auditor completed a test of 30 randomly selected accounts. For five of the accounts selected, the auditor was unable to find supporting documentation in the normal place of storage. Whic

Question 372

(0)

According to the theory of constraints, which of the following is most influenced by various bottlenecks the organization encounters?

Question 373

(0)

Which of the following internal audit activities is performed in the design evaluation phase?

Question 374

(0)

If there is a significant error or omission in the final audit report that was communicated to management, which of the following is the key action for the internal audit activity?

Question 375

(0)

Which of the following would be the most reliable source of documentary evidence?

Question 376

(0)

An organization does not have a formal risk management function. According to the Standards, which of the following are conditions where the internal audit activity may provide risk management consu

Question 377

(0)

Which of the following is the primary weakness of internal control questionnaires (ICQs)?

Question 378

(0)

Following an IT systems audit, management agreed to implement a specific control in one of the IT systems. After a period, the internal auditor followed up and learned that management had not implem

Question 379

(0)

When reviewing workpapers, engagement supervisors may ask for additional evidence or clarification via review notes. According to IIA guidance, which of the following statements is true regarding th

Question 380

(0)

Flowcharts are useful during audit planning because they contain information that may help internal auditors with which of the following?

Question 371

An internal auditor completed a test of 30 randomly selected accounts. For five of the accounts selected, the auditor was unable to find supporting documentation in the normal place of storage. Which of the following next steps would be most appropriate for the internal auditor to take?

Conclude that the test failed because at least 17 percent of the sample items were not supported.

Select five new accounts to replace the ones that were missing supporting documentation.

Expand the sample size to 60 to determine whether the error rate remains the same.

Contact management to determine whether the supporting documentation can be located elsewhere.

Show Answer Comment (0)

Question 372

According to the theory of constraints, which of the following is most influenced by various bottlenecks the organization encounters?

Manufacturing.

Profitability.

Overheads.

Quality.

Show Answer Comment (0)

Question 373

Which of the following internal audit activities is performed in the design evaluation phase?

The internal auditor reviews prior audits and workpapers.

The internal auditor identifies the controls over segregation of duties.

The internal auditor checks a process for completeness.

The internal auditor communicates the audit results to management.

Show Answer Comment (0)

Question 374

If there is a significant error or omission in the final audit report that was communicated to management, which of the following is the key action for the internal audit activity?

Communicate the corrected information to the manager of the audited department.

There should be a follow-up audit to address the error or omission.

The auditor should update the scope of the audit to include the omission.

The corrected communication should be redistributed to the original recipients.

Show Answer Comment (0)

Question 375

Which of the following would be the most reliable source of documentary evidence?

Confirmation letters.

Remittance advices.

Policy statements.

Canceled checks.

Show Answer Comment (0)

Question 376

An organization does not have a formal risk management function. According to the Standards, which of the following are conditions where the internal audit activity may provide risk management consulting?

There is a clear strategy and timeline to migrate risk management responsibility back to management.

The internal audit activity has the final approval on any risk management decisions.

The internal audit activity gives objective assurance on all parts of the risk management framework for which it is responsible.

The nature of services provided to the organization is documented in the internal audit charter.

1 and 4 only.

2 and 4 only.

1 and 3 only.

2 and 3 only.

Show Answer Comment (0)

Question 377

Which of the following is the primary weakness of internal control questionnaires (ICQs)?

ICQs do not allow for open-ended questions.

ICQs do not allow for evaluating multiple locations.

ICQs require significant auditor follow-up, as different managers may give different responses.

ICQ respondents have incentives to answer that there are internal controls in place.

Show Answer Comment (0)

Question 378

Following an IT systems audit, management agreed to implement a specific control in one of the IT systems. After a period, the internal auditor followed up and learned that management had not implemented the agreed management action due to the decision to move to another IT system that has built-in controls, which may address the risks highlighted by the internal audit. Which of the following is the most appropriate action to address the outstanding audit recommendation?

The auditor examines the system documentation of the new system to verify that the risk has been addressed in the new system, then reports to senior management the closure of the issue.

The auditor accepts management's explanation that the previously identified issue is adequately addressed by the new IT system, as management understands the concern and is most knowledgeable about the new system, and closes the outstanding issue.

The auditor advises management that replacing the IT system does not dismiss the prior obligation to implement the agreed action plan, and escalates the issue to senior management and the board.

The auditor requires management to provide details regarding the process for selecting the new IT system and whether other systems were evaluated, and closure of the issue would depend on the new information provided.

Show Answer Comment (0)

Question 379

When reviewing workpapers, engagement supervisors may ask for additional evidence or clarification via review notes. According to IIA guidance, which of the following statements is true regarding the engagement supervisor's review notes?

The review notes may be cleared from the final documentation once the engagement supervisor's concerns have been addressed.

Management of the area under review must address the engagement supervisor's review notes before the audit report can be finalized.

The chief audit executive must initial or sign the engagement supervisor's review notes to provide evidence of appropriate engagement supervision.

Review notes provide documented proof that the engagement is supervised properly and must be retained for the quality assurance and improvement program.

Show Answer Comment (0)