IIA-CIA-PART2 practice questions 121–130

1. Question 121 · 475 in bank

   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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   Answer: B

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2. Question 122 · 475 in bank

   Which of the following is an effective approach for internal auditors to take to improve collaboration with audit clients during an engagement? 1. Obtain control concerns from the client before the audit begins so the internal auditor can tailor the scope accordingly. 2. Discuss the engagement plan with the client so the client can understand the reasoning behind the approach. 3. Review test criteria and procedures where the client expresses concerns about the type of tests to be conducted. 4. Provide all observations at the end of the audit to ensure the client is in agreement with the facts before publishing the report.

   • A1 and 2 only
   • B1 and 4 only
   • C2 and 3 only
   • D3 and 4 only

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   Answer: A

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3. Question 123 · 475 in bank

   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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   Answer: D

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4. Question 124 · 475 in bank

   According to IIA guidance, which of the following is true regarding the exit conference for an internal audit engagement?

   • AA primary purpose of the exit conference is to provide for the timely communication of observations that call for immediate management action.
   • BBoth the chief audit executive and the chief executive over the activity or function reviewed must attend the exit conference to validate the findings.
   • CThe exit conference provides only anticipated results for inclusion in the final audit communication.
   • DDuring the exit conference, the performance of the internal auditors who executed the engagement is reviewed.

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   Answer: C

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5. Question 125 · 475 in bank

   Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?

   • AThe number of customer inquiries recorded per day.
   • BThe percentage of customer issues resolved within 24 hours.
   • CThe number of customer complaints recorded per day.
   • DThe percentage of total customers served per day.

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   Answer: B

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6. Question 126 · 475 in bank

   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

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   Answer: B

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7. Question 127 · 475 in bank

   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
   • DVendor names

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   Answer: B

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8. Question 128 · 475 in bank

   A major insurance company provides a discount on automobile insurance if the vehicle meets certain safety criteria. Which of the following audit tests would provide an internal auditor with the best evidence that all qualifying insured automobiles are receiving the discount?

   • ACompare the percentage of automobiles receiving discounts this year to that of last year.
   • BAsk managers whether they are aware of the discount criteria and whether they are providing the discount to all qualifying automobiles.
   • CSelect a sample of automobiles that are not receiving the discount and determine if they have been properly excluded.
   • DSelect a sample of automobiles receiving the discount and determine that the required discount criteria are being met.

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   Answer: C

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9. Question 129 · 475 in bank

   Which of the following is correct with respect to roles within an enterprise-wide risk management process? 1. The board provides oversight to the risk management process. 2. Executive management owns the risk management framework. 3. Senior management is assigned ownership of risks. 4. Internal audit modifies the risk assessment determined by management.

   • A1 and 2 only
   • B3 and 4 only
   • C1, 2, and 3 only
   • D1, 2, 3, and 4

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   Answer: C

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10. Question 130 · 475 in bank

    During a systems development audit, software developers indicated that all programs were moved from the development environment to the production environment and then tested in the production environment. What should the auditor recommend? I. Implement a test environment to ensure that testing is not performed in the production environment. II. Require developers to move modified programs from the development environment to the test environment and from the test environment to the production environment. III. Eliminate access by developers to the production environment.

    • AI only
    • BIII only
    • CI and II only
    • DI and III only

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    Answer: D

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IIA-CIA-PART2 practice, question 121. 475 questions available.