IIA IIA-CIA-Part2 Quiz 69 Topic 5 Questions 341-345

Question: 1

While developing a risk based audit plan, which of the following sources of information would provide the least value to the chief audit executive?

AResults from the organization's business process management program.

BUser acceptance testing of the organization's enterprise resource planning application.

CRisk assessments conducted by the board.

DKey business strategies adopted by the organization in the strategic plan.

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Question: 2

An organization has a large number of vendors supplying goods to its various branches across the region. The code of conduct statements signed by the employees specify that the employees or their families will not sell goods to the organization. However, during the internal audit of a branch, the internal auditor suspected that some of the employees may be supplying goods to the organization contrary to the code of conduct. The chief audit executive has requested that a thorough review be completed to identify the potential employee vendors. Of the following tests, it would be least useful to compare [List A] with [List B].

[List A]

[List B]

AVendor bank account numbers
Employee bank account numbers

BDates of payments to vendors
Dates of salary payments to employees

CAddresses of vendors from the vendor database
Addresses of employees from the employee database
D .Vendor names
Employee names

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Question: 3

Management requested the chief audit executive (CAE) to include an audit of the organization's health and safety program in next year's annual audit plan. However, the internal audit department has no expertise in this are

a. Which of the following would be the most appropriate action by the CAE?

AWith management's agreement, amend the scope of the audit to ensure that areas examined do not require specialized knowledge and expertise.

BMeet with management to explain that the audit cannot be undertaken and discuss alternative strategies that can be implemented until internal audit can develop its capability in the area.

CAccept the request provided management has conducted a thorough risk assessment prior to the engagement to help guide the audit.

DAdvise management that compliance audits of this type should only be conducted by the corresponding regulatory agency to ensure independence.

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Question: 4

Which of the following would be the most important reason for the chief audit executive (CAE) to use inputs from management strategy to update the audit universe?

AThe audit charter requires the CAE to update the audit universe before embarking on the selection of potential audit engagements.

BThe CAE wants to consider the organization's strategic plan including attitude toward risk and the degree of difficulty to achieving planned objectives.

CThe CAE wants to cover management planned activities for the upcoming year in the audit plan.

DThe CAE wants to determine internal audit resourcing requirements to cover the organization's major processes and activities over time.

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Question: 5

While preparing the annual audit plan, the newly assigned chief audit executive (CAE) learns that the organization has not yet implemented a risk framework. Which of the following would be the most appropriate action for the CAE to take regarding potential engagements?

APrioritize the engagements that were not done in previous years and schedule them for the upcoming year.

BConsult with senior management and the board and make adjustments regarding risk.

CReview all outstanding recommendations from prior audit engagements and focus on them in the upcoming year.

DUse the previous three-year audit plan to extrapolate potential engagements for the upcoming year's schedule of engagement.

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IIA IIA-CIA-Part2 Quiz:69 Topic:5 Questions:341-345