IIA IIA-CIA-Part2 Quiz 171 Topic 7 Questions 851-855

Question: 1

Why should organizations require assurance engagement clients to reply promptly and outline the corrective action that has been implemented on reported observations?

ATo remove items from the pending list as soon as possible.

BTo effect savings or to institute compliance as early as possible.

CTo indicate concurrence with the engagement observations.

DTo ensure that the engagement work schedule is kept up to date.

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Question: 2

An organization's internal auditors have conducted a series of assurance engagements. The resulting recommendations have been readily accepted by engagement clients because of the potential cost savings. Given the acceptance of the cost savings engagements and the scarcity of internal auditing resources, the manager in charge of these engagements also decided that follow-up action was not needed. The manager reasoned that cost savings should be sufficient to motivate the client to implement the engagement recommendations. Thus, follow-up was not scheduled as a regular part of the engagement plan. Was the manager's decision appropriate?

AYes. Follow-up is not customary.

BNo. The internal auditors should determine whether the client has appropriately implemented all of the engagement recommendations.

CNo. Scarcity of resources is not a sufficient reason to omitfollow-up.

DYes. Given sufficient evidence of motivation by the client, follow-up is not needed.

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Question: 3

An internal auditor found that employees in the maintenance department were not signing their time cards. This situation also existed during the last engagement. The internal auditor should

AInclude this observation in the current engagement communication.

BAsk the manager of the maintenance department to assume the resulting risk.

CWithhold conclusions about payroll internal control in the maintenance department.

DInstruct the employees to sign their time cards.

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Question: 4

Internal auditors realize that at times corrective action is not taken even when agreed to by the appropriate parties. This should lead an internal auditor to

ADecide the extent of necessary follow-up work.

BAllow management to decide when to follow-up because follow-up is management's ultimate responsibility.

CDecide to conduct follow-up work only if management requests the internal auditor's assistance.

DWrite a follow-up engagement communication with all observations and their significance for operations.

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Question: 5

Which of the following statements best describes an internal auditor's responsibility for follow-up activities related to a previous engagement?

AThe internal auditor should determine that corrective action has been taken and is achieving the desired results or that management or the board has assumed the risk of not taking corrective action.

BThe internal auditor should determine that management has initiated corrective action, but the internal auditor has no responsibility to determine if the action is achieving the desired results. That determination is solely management's responsibility.

CThe chief audit executive is responsible for scheduling follow-up activities only if directed to do so by senior management or the audit committee. Otherwise, follow-up is entirely discretionary.

DNone of the answers are correct.

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IIA IIA-CIA-Part2 Quiz:171 Topic:7 Questions:851-855