IIA IIA-CIA-Part1 Quiz 123 Topic 4 Questions 611-615

Question: 1

An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system.

Which function, if previously performed by the auditor, would represent a conflict of interest?

AMonitoring the allowance for doubtful accounts.

BWriting procedures for the handling of duplicate payments.

CSigning timekeeping cards for subordinates.

DReviewing shipping documents for accuracy.

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Question: 2

Which of the following describes a control weakness?

APurchasing procedures are well designed and are followed unless otherwise directed by the purchasing supervisor.

BPre-numbered blank purchase orders are secured within the purchasing department.

CNormal operational purchases fall in the range from $500 to $1, 000 with two signatures required for purchases over $1, 000.

DThe purchasing agent invests in a publicly traded mutual fund that lists the stock of one of the company's suppliers in its portfolio.

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Question: 3

Management has requested that an internal auditor serve as member of a task force that will review current receivables practices and make recommendations to improve processes. Which of the following is the most appropriate response by the internal auditor?

AAccept the assignment provided that such consulting services are defined in the charter.

BDecline the assignment because participation on task forces will impair the auditor's objectivity in future audit engagements.

CAccept the assignment if the auditor believes that it will not impair objectivity in future audit engagements.

DDo not accept the assignment because the assignment is not part of an approved audit plan.

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Question: 4

Senior management at a financial institution has received allegations of fraud at its derivatives trading desk and has asked the internal audit activity to investigate and issue a report concerning the allegations. The internal audit activity has not yet developed sufficient proficiency regarding derivatives trading to conduct a thorough fraud investigation in this are

a. Which of the following courses of action should the chief audit executive (CAE) take to comply with the Standards?

AEngage the former head of the institution's derivatives trading desk to perform the investigation and submit a report with supporting documentation to the CAE.

BRequest that senior management allow a delay of the fraud investigation until the internal audit activity's on-staff certified fraud examiner is able to obtain the appropriate training regarding the analysis of derivatives trading.

CRequest that senior management exclude the internal audit activity from the investigation completely and instead contract with an external certified fraud examiner with derivatives experience to perform all aspects of the investigation and subsequent reporting.

DContract with an external certified fraud examiner with derivatives experience to perform the investigation and subsequent reporting, with the chief audit executive approving the scope of the investigation and evaluating the adequacy of the work performed.

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Question: 5

Which of the following corporate travel policies is least likely to be cost-effective?

ANegotiating corporate agreements with hotels, airlines, and car rental firms.

BTracking credits for canceled airline reservations.

CSelecting the least expensive airline travel available, without regard to total travel time and distance.

DTraveling to facilities in tourist areas during the off-season when possible.

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IIA IIA-CIA-Part1 Quiz:123 Topic:4 Questions:611-615