IIA IIA-CIA-Part1 Quiz 129 Topic 2 Questions 641-645

Question: 1

Human resources and payroll are separate departments. Which of the following combinations would provide the best segregation of duties?

AHuman resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.

BHuman resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.

CHuman resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.

DPayroll personnel add employees and enter employee bank account numbers but process hours only as approved by the human resources department. Paychecks are automatically deposited in the employee's bank account.

Show Answer

Question: 2

Which of the following is an appropriate role for the board in governance?

APreparing written organizational policies that relate to compliance with laws, regulations, ethics, and conflicts of interest.

BEnsuring that financial statements are understandable, transparent, and reliable.

CAssisting the internal audit activity in performing annual reviews of governance.

DWorking with the organization's attorneys to develop a strategy regarding current litigation, pending litigation, or regulatory proceedings governance.

Show Answer

Question: 3

According to the International Professional Practices Framework, which of the following is the appropriate division of responsibilities for the coordination of internal and external audit efforts?

I Oversight of Work

Coordination of Activities

Chief audit executive

Senior management

II . Board

Chief audit executive

III . Chief financial officer

Chief audit executive

IV . Board

Chief financial officer

AI

BII.

CIII.

DIV.

Show Answer

Question: 4

According to the Standards, the organizational status of the internal audit activity:

AMust be sufficient to permit the accomplishment of its audit responsibilities.

BIs best when the reporting relationship is direct to the board of directors.

CRequires the board's annual approval of the audit schedules, plans, and budgets.

DIs guaranteed when the charter specifically defines its independence.

Show Answer

Question: 5

A high-volume retailer of consumer goods has used point-of-sale data to record sales and update inventory records for several years. When price changes are scheduled, corporate headquarters downloads a price change file to a computer server system at each store. Each store's assistant manager is responsible for checking the server for downloads and running the program that updates the store's price file at the authorized price update time. In comparison with having headquarters initiate the price update centrally, this approach to price updating will most likely:

ADecrease the risk that customers will be undercharged consistently for sales items.

BDecrease the risk that item prices will sometimes be inaccurate.

CIncrease the risk that customers will be undercharged consistently for sales items.

DIncrease the risk that item prices will sometimes be inaccurate.

Show Answer

IIA IIA-CIA-Part1 Quiz:129 Topic:2 Questions:641-645