IIA IIA-CIA-Part2 Quiz 207 Topic 3 Questions 1031-1035

Question: 1

In order to reduce the costs of processing and paying for small purchases, an organization issued credit cards for use by selected employees to purchase small amounts of expendable goods and services. An internal auditor tested controls over the use of the credit cards and documented the findings in the audit observation. Which of the following statements represents the cause of the audit observation?

AFour of the 30 tested transactions appeared to represent a single purchase of a personal computer, which in total exceeded $1,950.

BCompany policy limits card use to $500 per transaction.

CAn interview with the card provider's customer representative indicated that an automated control feature designed to identify and report on split purchase transactions had not been activated for the organization's credit card system.

DThe personal computer purchased via the split purchase was not placed into the organization's capital equipment management system because it had not been acquired through the regular capital asset purchasing system. As a result, it was not subject to depreciation nor was it insured against theft.

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Question: 2

In order to reduce the costs of processing and paying for small purchases, an organization issued credit cards for use by selected employees to purchase small amounts of expendable goods and services. An internal auditor tested controls over the use of the credit cards and documented the findings in the audit observation. Which of the following statements represents the criterion of the audit observation?

AFour of the 30 tested transactions appeared to represent a single purchase of a personal computer, which in total exceeded $1,950.

BCompany policy limits card use to $500 per transaction.

CAn interview with the card provider's customer representative indicated that an automated control feature designed to identify and report on split purchase transactions had not been activated for the organization's credit card system.

DThe personal computer purchased via the split purchase was not placed into the organization's capital equipment management system because it had not been acquired through the regular capital asset purchasing system. As a result, it was not subject to depreciation nor was it insured against theft.

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Question: 3

When an order to a supplier for an unusually large number of parts is entered in a company's computerized system, the system prompts the company's senior management to review the transaction. This is an example of which of the following information technology controls?

ALogic test.

BCheck digits.

CData reasonableness tests.

DBalancing control activities.

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Question: 4

Which of the following is true regarding the internal audit activity's management of a thirdparty consulting engagement?

AThe consultant should be empowered to lead the engagement as deemed necessary to meet the audit objectives.

BThe internal auditor should understand the work of the consultant and ensure that audit objectives are being met.

CThe consultant should issue the final audit report if the auditor does not have the technical expertise to discuss the issues.

DThe auditor may provide advice but has no responsibility for the final audit report issued by the consultant.

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Question: 5

The sampling method that is most appropriate to use when one deviation is considered critical is

ASequential sampling.

BMean per unit sampling.

CRatio estimation sampling.

DDiscovery sampling.

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IIA IIA-CIA-Part2 Quiz:207 Topic:3 Questions:1031-1035