IIA IIA-CIA-Part1 Quiz 134 Topic 6 Questions 666-670

Question: 1

According to NA guidance, which of the following conditions would enhance the independence of the internal audit activity?

AThe organizational culture rewards critical and objective thinking.

BThe quality of work performed by the internal audit activity is periodically reviewed,

CThe organization establishes effective governing body oversight,

DAudit assignments are rotated among internal audit staff

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Question: 2

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.

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Question: 3

If an internal auditor discloses confidential information in response to a lawsuit, the internal auditor has violated:

AThe IIA Code of Ethics.

BThe Standards.

CBoth the IIA Code of Ethics and the Standards.

DNeither the IIA Code of Ethics nor the Standards.

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Question: 4

An organization has a policy requiring two signatures on all checks written for amounts in excess of $10,000. When evaluating controls over disbursements, an auditor would conclude that a greater risk exists if:

AThe auditor located two checks for $9,000 each that contained one authorized signature.

BThe $10,000 was an immaterial amount to the organization and very few cash disbursements required an amount in excess of $10,000.

CThe director of accounting was not one of the authorized signers.

DThere were several instances in which successively numbered checks for amounts between $5,000 and $10,000 were made payable to the same vendor.

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Question: 5

An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if:

AThe auditor notes strong indicators of a specific fraud involving this account.

BThe company has relatively stable operations which have not changed much over the past year.

CThe auditor would like to identify large, unusual, or non-recurring transactions during the year.

DThe operating expenses vary in relation to other operating expenses, but not in relation to revenue.

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IIA IIA-CIA-Part1 Quiz:134 Topic:6 Questions:666-670