IIA IIA-CIA-Part1 Quiz 132 Topic 10 Questions 656-660

Question: 1

An internal audit activity encounters a scope limitation from senior management that will affect its ability to meet its goals and objectives for a potential engagement client. The nature of the scope limitation should be:

ANoted in the audit workpapers, but the engagement should be carried out as scheduled, with any necessary adjustments made based on the scope limitation.

BCommunicated to the external auditors so that they can investigate the area in more detail.

CCommunicated, preferably in writing, to the board.

DCommunicated to management, stating that the limitation will not be accepted because it would impair the audit activity's independence.

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Question: 2

In a well-developed management environment, the internal audit activity would:

AReport the results of audit engagements to line management as well as to senior management.

BConduct regularly scheduled audits of existing systems and initial audits of new computer systems after they have begun operating.

CInterface primarily with senior management, minimizing interactions with line managers who are the subjects of internal audit work.

DFocus on the maintenance of accounting controls (such as segregation of the duties of authorization, recording, and custody) and report results to the audit committee.

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Question: 3

If management has not established a risk management process, the internal audit activity could:

ATake a proactive role that supplements traditional assurance activities.

BIdentify and mitigate risks to the organization.

CAssume responsibility for the management of identified risks.

DAssume primary responsibility for determining if adequate and effective processes are in place.

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Question: 4

A daily report which lists unsuccessful attempts to log on to a computer system is a:

ACorrective control.

BPreventive control.

CDetective control.

DCompensating control.

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Question: 5

Some of a company's payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be:

AEdit controls on the payroll file.

BAppropriate segregation of duties for batch approval.

CValidation of hash totals.

DReconciliation of paychecks to the bank account.

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IIA IIA-CIA-Part1 Quiz:132 Topic:10 Questions:656-660