IIA IIA-CIA-Part2 Quiz 29 Topic 9 Questions 141-145

Question: 1

An internal auditor for a financial institution has just completed an audit of loan processing. Of the 81 loans approved by the loan committee, the auditor found seven loans which exceeded the approved amount. Which of the following actions would be inappropriate on the part of the auditor?

AExamine the seven loans to determine if there is a pattern. Summarize amounts and include in the engagement final communication.

BReport the amounts to the loan committee and leave it up to them to correct. Take no further follow-up action at this time and do not include the items in the engagement final communication.

CFollow up with the appropriate vice president and include the vice president's acknowledgment of the situation in the engagement final communication.

DDetermine the amount of the differences and make an assessment as to whether the dollar differences are material. If the amounts are not material, not in violation of government regulations, and can be rationally explained, omit the observation from the engagement final communication.

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Question: 2

An organization contracted a third party to construct a new facility that was estimated to cost $25 million. Which of the following is the most pertinent reason for the organization to audit the contractor's records?

AThe contract includes a right-to-audit clause.

BThe contractor will be paid on a cost-plus basis.

CThe estimated cost is high.

DThe contractor has subcontracted much of the work.

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Question: 3

Which of the following would not be an appropriate step for an internal auditor to perform during an assessment of compliance with an organization's privacy policy?

ADetermine who can access databases containing confidential information.

BEvaluate the organization's privacy policy to determine if appropriate information is covered.

CAnalyze access to permanent files and reports containing confidential information.

DEvaluate the government's security measures related to confidential information received from the organization.

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Question: 4

When conducting a performance appraisal of an internal auditor who has been a below-average performer, it is not appropriate to:

ANotify the internal auditor of the upcoming appraisal several days in advance.

BUse objective, impartial language.

CUse generalizations.

DDocument the appraisal.

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Question: 5

The following are potential sources of evidence regarding the effectiveness of a division's total quality management program. The least persuasive evidence would be a comparison oF.

AEmployee morale before and after program implementation.

BScrap and rework costs before and after program implementation.

CCustomer returns before and after program implementation.

DManufacturing and distribution costs per unit before and after program implementation.

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IIA IIA-CIA-Part2 Quiz:29 Topic:9 Questions:141-145