IIA-CIA-PART2 practice questions 171–180

1. Question 171 · 475 in bank

   Which of the following controls in a computerized consumer loan system of a major bank would be the least effective in detecting a fraudulent loan?

   • AAll log-in accounts become inaccessible after three incorrect password attempts.
   • BLoan approvals over a pre-determined limit must have management approval.
   • CCustomer information is matched to payment data prior to funds disbursement.
   • DSystem controls prevent supervisors from delegating their approval authority during vacation periods.

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   Answer: A

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2. Question 172 · 475 in bank

   During an audit of a branch bank, an internal auditor learned that a series of system failures had resulted in a four-day delay in processing customers' scheduled payroll direct deposits. The first failure was that of a disk drive, followed by software and other minor failures. Which of the following controls should the auditor recommend to avoid similar delays in processing?

   • AContingency planning.
   • BRedundancy checks.
   • CProcess monitoring.
   • DPreventive maintenance.

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   Answer: A

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3. Question 173 · 475 in bank

   An internal auditor notes that employees continue to violate segregation-of-duty controls in several areas of the finance department, despite previous audit recommendations. Which of the following recommendations is the most appropriate to address this concern?

   • ARecommend additional segregation-of-duty reviews.
   • BRecommend appropriate awareness training for all finance department staff.
   • CRecommend rotating finance staff in this area.
   • DRecommend that management address these concerns immediately.

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   Answer: B

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4. Question 174 · 475 in bank

   Which of the following is the best approach for obtaining feedback from engagement clients regarding the quality of internal audit work?

   • AAsk questions during the exit interviews and send copies of the documented responses to the clients.
   • BCall engagement clients after the exit interviews and send copies of the documented responses to the clients.
   • CDistribute questionnaires to selected engagement clients shortly before preparing the internal audit annual activity report.
   • DProvide questionnaires to engagement clients at the beginning of each engagement and request that the clients complete and return them after the

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   Answer: D

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5. Question 175 · 475 in bank

   Which of the following has the greatest effect on the efficiency of an audit?

   • AThe complexity of deficiency findings.
   • BThe adequacy of preliminary survey information.
   • CThe organization and content of workpapers.
   • DThe method and amount of supporting detail used for the audit report.

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   Answer: B

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6. Question 176 · 475 in bank

   After completing a fraud investigation but before publishing a formal written report, the chief audit executive should submit a draft of the final report to the organization's:

   • ALegal counsel.
   • BExternal auditor.
   • CAudit committee chairperson.
   • DChief executive officer.

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   Answer: A

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7. Question 177 · 475 in bank

   Which of the following types of contracts would provide the least incentive for a contractor to achieve economy and efficiency?

   • ALump-sum contract.
   • BCost-plus contract.
   • CUnit-price contract.
   • DIndefinite delivery contract.

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   Answer: B

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8. Question 178 · 475 in bank

   Which of the following is least likely to help ensure that risk is considered in a work program?

   • ARisks are discussed with audit client.
   • BAll available information from the risk-based plan is used.
   • CClient efforts to affect risk management are considered.
   • DPrior risk assessments are considered.

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   Answer: D

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9. Question 179 · 475 in bank

   During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?

   • AIssue an exception report.
   • BPay the amount billed and adjust the inventory account for the difference.
   • CReturn the invoice to the vendor for correction.
   • DAuthorize payment of the full invoice, but maintain an open purchase order record for the missing goods.

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   Answer: A

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10. Question 180 · 475 in bank

    Which of the following best describes the primary concern of the audit manager upon review of engagement working papers of an auditor?

    • ATo ensure adequate control over the custody of working papers is exercised by the auditor.
    • BTo ensure that as part of the documentation the auditor collected original documents that can corroborate the audit findings.
    • CTo ensure that the work papers create background for subsequent reviews.
    • DTo ensure that the audit programs are followed by the auditor.

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    Answer: D

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IIA-CIA-PART2 practice, question 171. 475 questions available.