IIA IIA-CIA-Part2 Quiz 49 Topic 1 Questions 241-245

Question: 1

The most effective procedure to verify compliance with a requirement that materials be purchased from the lowest-priced source is to compare:

APrices paid for selected materials with prices listed on related purchase orders.

BBids obtained for selected purchases with related purchase orders.

CVendors' current prices with prices listed on related purchase orders.

DApproved vendor lists with bids obtained for selected purchases.

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Question: 2

The internal audit activity's primary responsibility in a review or examination of the organization by an external regulatory body is to:

AVerify that regulatory reviews occur with adequate frequency.

BProvide follow-up to determine if the regulator's findings are appropriately resolved by management.

CPrepare documentation for the regulator.

DDocument the responses to the regulator's findings.

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Question: 3

Under what circumstances would internal audit not become involved when intentional misconduct is suspected?

AManagement is involved in wrongdoing.

BManagement is running a parallel investigation.

CManagement does not believe a trusted employee could be guilty.

DManagement does not maintain strong internal controls.

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Question: 4

During a payroll audit of a large organization, an internal auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:

AContinue to follow the engagement program because the engagement scope and objectives have already been discussed with management.

BReview the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.

CRecommend to the chief audit executive that a fraud investigation be started.

DTest a sample of payroll changes to ensure that they were approved by the assistant director before being processed.

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Question: 5

The best method for assessing the relative importance of risk factors is to:

AChange the rating of the factors from a 1-3 scale to a 1-5 scale.

BAssign weights to the factors based on the comparative impact.

CList the risk factors in a priority order.

DUse data from an independent source.

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IIA IIA-CIA-Part2 Quiz:49 Topic:1 Questions:241-245