IIA IIA-CIA-Part2 Quiz 165 Topic 6 Questions 821-825

Question: 1

In an engagement performed at the organization's real estate development subsidiary, the engagement objective was to determine that capitalized land improvements had been assigned equally to all developed lots. The internal auditors identified the following information:

1. Independent appraisals of all lot values

2. Sales records for similar subdivision lots

3. An analysis of market values of each lot

Which of the following informational criteria, if any, are violated?

ASufficiency and relevance.

BReliability and sufficiency.

CRelevance and reliability.

DNo criteria are violated.

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Question: 2

An internal auditor has set an engagement objective of determining whether all cash receipts are deposited intact daily. To satisfy this objective, the internal auditor interviewed the controller who gave assurances that all cash receipts are deposited as soon as is reasonably possible. As information that can be used to satisfy the stated engagement objective, the controller's assurances are

ASufficient but not reliable or relevant.

BSufficient, reliable, and relevant.

CNot sufficient, reliable, or relevant.

DRelevant but not sufficient or reliable.

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Question: 3

Which of the following statements is true with respect to due professional care?

AAn internal auditor should perform detailed tests of all transactions before communicating results.

BAn item should not be mentioned in an engagement communication unless the internal auditor is absolutely certain of the item.

CAn engagement communication should never be viewed as providing an infallible truth about a subject.

DAn internal auditor has no responsibility to recommend improvements.

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Question: 4

Supervision of an internal audit engagement should include

ADetermining that engagement working papers adequately support the engagement observations.

BAssigning staff members to the particular engagement.

CDetermining the scope of the engagement.

DAppraising each internal auditor's performance on at least an annual basis.

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Question: 5

The chief audit executive is responsible for engagement supervision. The most important form of supervision during the field work phase of engagement involves

ASeeing that the approved engagement work program is completed unless changes are justified and authorized.

BProviding suitable instructions to subordinates at the outset of the engagement and approving the engagement program.

CAppraising each internal auditor's performance at least annually.

DMaking sure that communications are accurate, objective, clear, concise, constructive, and timely.
Expalantion:
Among other things, supervision includes ensuring that
(1) the approved engagement work program is completed unless changes are justified and authorized, and
(2) working papers adequately support engagement observations, conclusions, and recommendations (PA 2340-1).

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IIA IIA-CIA-Part2 Quiz:165 Topic:6 Questions:821-825