IIA IIA-CIA-Part2 Quiz 9 Topic 1 Questions 41-45

Question: 1

Which of the following is true of engagement recommendations?

1. Specific suggestions for implementation must be included.

2. The internal auditor's observations and conclusions may serve as the basis.

3. Actions to correct existing conditions or improve operations may be included.

4. Approaches to correcting or enhancing performance may be suggested.

AI only

BIII only

CI, III, and IV only

DII, III, and IV only

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Question: 2

During an interview with a manager in a company's claims department, an auditor noted that the manager became nervous and changed the subject whenever the auditor raised questions about certain types of claims. The manager's answers were consistent with company policies and procedures. When documenting the interview, the auditor should:

ADocument the manager's answers, noting the nature of the nonverbal communication.

BDocument the manager's answers but not the nonverbal communication because it is subjective and is not corroborated.

CConclude that the nonverbal communication is persuasive and that sufficient evidence exists to begin a fraud investigation.

DDisregard the interview entirely because the verbal and nonverbal communications were contradictory.

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Question: 3

The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?

1. Financial measures.

2. Internal business process measures.

3. Client satisfaction measures.

4. Innovation and learning measures.

AI only

BII and IV only

CIII and IV only

DII, III, and IV only

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Question: 4

An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:

''A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted.''

The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor's workpaper?

AUse of audit verification symbols to show that each file was examined.

BRemoval of the employee names to protect their confidentiality.

CJustification for the sample size.

DListing of the actual documents examined for each employee.

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Question: 5

Which of the following is an example of the verification of internal documentary evidence?

AReviewing a carrier's bill of lading.

BReconciling a vendor's month-end statement.

CVouching a copy of a sales invoice to receivables.

DRecalculating a customer's purchase order.

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IIA IIA-CIA-Part2 Quiz:9 Topic:1 Questions:41-45