IIA-CIA-PART2 practice questions 91–100

1. Question 91 · 475 in bank

   According to IIA guidance, which of the following is the least appropriate role for the internal audit activity in the organization's risk management program?

   • AConducting full investigations of suspected fraud.
   • BMonitoring the organization's whistle-blower hotline.
   • CAssessing the risk of fraudulent activity in the organization.
   • DProviding ethics training sessions to organization staff.

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   Answer: C

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2. Question 92 · 475 in bank

   An internal auditor has just undertaken an organization-wide risk assessment. In identifying potential audit engagements, the internal auditor should consider least:

   • AFocusing on the high risk areas as sources of potential engagements.
   • BFocusing in areas not audited last year.
   • CFactoring in management requests.
   • DFocusing on those risks highlighted by the external auditor.

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   Answer: B

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3. Question 93 · 475 in bank

   What does the following scatter gram suggest?

   • ASales revenue is related to training costs.
   • BThe training program is not effective.
   • CIncreases in training costs consistently increase sales revenue.
   • DOne data point is incorrectly plotted.

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   Answer: A

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4. Question 94 · 475 in bank

   New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide.

   • AFeedback control data.
   • BIrrelevant and argumentative information.
   • CEvidence that the new credit policies do not meet the stated corporate objective to improve collections.
   • DA statistically valid conclusion about the impact of the new credit policies on customer goodwill.

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   Answer: A

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5. Question 95 · 475 in bank

   Which of the following is not true regarding the management of internal audit resources?

   • AA minimum level of information technology knowledge is necessary.
   • BThe adequacy of internal audit resources is ultimately a board responsibility.
   • CResources include external service providers and computer-assisted audit techniques.
   • DSkills availability must be aligned with financial constraints.

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   Answer: D

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6. Question 96 · 475 in bank

   In which of the following situations would it be most appropriate to employ the services of a forensic specialist?

   • ADetection of unauthorized changes to source documents.
   • BReview for misapplication of general computer controls over accounts receivable.
   • CInvestigation of ghost employees in a large business.
   • DVerification of fixed assets in a manufacturing company.

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   Answer: A

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7. Question 97 · 475 in bank

   An organization has an opening for an entry-level internal audit position. When interviewing for the position, which of the following is the least important skill for an entry-level internal auditor?

   • AConflict resolution skills.
   • BCommunication skills.
   • CTime management skills.
   • DInterpersonal skills.

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   Answer: A

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8. Question 98 · 475 in bank

   The following is an excerpt from an audit engagement workpaper: ✑ A Company ✑ Accounts Receivable ✑ Date Objective. To determine if the computer system is correctly recording all accounts receivable transactions. Procedures: Judgmental selection of a sample of all accounts receivable balances greater than $50,000 for positive confirmation of balances. Conclusion: Based on the results of testing wherein all but three confirmations were returned, the accounts receivable balance is fairly presented in all material respects. Which of the following is true regarding the workpaper?

   • AIt is not appropriate to judgmentally select a sample when testing accounts receivable.
   • BA conclusion should be reached only for the results of overall testing, not for individual procedures.
   • CThe audit procedures used are not consistent with the audit objective.
   • DThe format of the workpaper does not conform to the standard format for workpapers.

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   Answer: C

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9. Question 99 · 475 in bank

   The board has asked the internal audit activity (IAA) to be involved in the organization's enterprise risk management process. Which of the following activities is appropriate for IAA to perform without safeguards?

   • ACoach management in responding to risks.
   • BDevelop risk management strategies for board approval.
   • CFacilitate identification and evaluation of risks.
   • DEvaluate risk management processes.

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   Answer: D

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10. Question 100 · 475 in bank

    Which of the following trends found on financial reports would most likely indicate a possible problem?

    • AA material decrease in the receivables turnover.
    • BA material increase in inventory turnover.
    • CA material increase in daily sales compared to total outstanding receivables.
    • DA material increase in the acid-test ratio.

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    Answer: A

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IIA-CIA-PART2 practice, question 91. 475 questions available.