IIA-CIA-PART2 practice questions 361–370

1. Question 361 · 475 in bank

   Which of the following is characteristic of a qualitative metric rather than a quantitative measure?

   • AExisting data is easily understood.
   • BUnique data is collected through survey research.
   • CLess effort is required to collect data.
   • DData is readily comparable to that of other organizations.

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   Answer: D

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2. Question 362 · 475 in bank

   Which of the following actions should the chief audit executive take when senior management decides to accept risks by choosing to do business with a questionable vendor?

   • APersuade senior management to take appropriate action.
   • BCancel issuing the engagement report due to the assumed risks.
   • CAccept senior management’s assumption of the risks.
   • DDiscuss the issue with the board for them to take appropriate action.

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   Answer: D

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3. Question 363 · 475 in bank

   Which of the following examples would an internal auditor consider the least reliable form of evidence?

   • AA vendor invoice.
   • BA letter from an outside attorney.
   • CAn internal time card approved by the supervisor.
   • DA process map prepared by the auditor.

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   Answer: D

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4. Question 364 · 475 in bank

   Which of the following questions would provide the most important information when examining the key risks of a new business process?

   • AWhat are the procedural steps?
   • BWhy does the new process exist?
   • CWho are the personnel involved?
   • DWhat are the primary inputs and outputs?

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   Answer: B

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5. Question 365 · 475 in bank

   Which of the following is an appropriate engagement objective for an upcoming audit of the organization’s governance system?

   • AAssess the design, implementation, and effectiveness of the organization’s ethics program.
   • BAssess the completeness and accuracy of the management letter section of the organization’s annual report.
   • CAssess whether privacy controls over a client’s personally identifiable information are in compliance with state regulations.
   • DAssess the accuracy of calculations and timeliness of tax payments to the government.

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   Answer: A

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6. Question 366 · 475 in bank

   An internal auditor is examining the procurement process for design adequacy. Which of the following conclusions by the auditor would most likely suggest further testing is needed?

   • ADesign is adequate with no significant control issues.
   • BDesign is adequate; however, some significant control issues exist.
   • CDesign is inadequate and significant control issues exist.
   • DDesign is inadequate; however, no significant control issues exist.

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   Answer: C

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7. Question 367 · 475 in bank

   When estimating the impact of an inherent risk, which of the following should internal auditors consider?

   • AThe probability and frequency of occurrence.
   • BFinancial and nonfinancial factors related to the risk.
   • CThe number of risks identified on the heat map.
   • DThe residual risk following implementation of appropriate controls.

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   Answer: B

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8. Question 368 · 475 in bank

   An internal auditor is using the discovery sampling technique. She has not completed the analysis, but she already discovered that at least one item failed to comply with the required standard. Which of the following is the most appropriate response?

   • AThe auditor must test the remaining items to ensure due professional care.
   • BThe noncompliant item is an indicator that the auditor should select a different sampling methodology.
   • CThe noncompliant item is an indicator that the auditor should increase the sample size.
   • DThe auditor may draw a conclusion based on the singular noncompliant item.

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   Answer: D

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9. Question 369 · 475 in bank

   An engagement supervisor found that an internal auditor's conclusion was not adequately supported by testing. Which of the following additional sources of evidence would most likely enable the supervisor to accept the conclusion?

   • AManagement of the area under review has accepted the auditor's conclusion.
   • BThere is interview evidence that supports the internal auditor's conclusion.
   • CMonitoring performed by management of the area under review produced similar results as the auditor's tests.
   • DThe organization's external auditors have reported a similar conclusion.

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   Answer: C

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10. Question 370 · 475 in bank

    Which of the following statements is true regarding the communication and approval of the internal audit plan?

    • AAfter communicating the internal audit plan to the board, the chief audit executive (CAE) determines the resources needed to implement it.
    • BThe CAE and the board agree in advance on the criteria that would determine whether changes to the internal audit plan need to be discussed with the board.
    • CAfter communicating the internal audit plan to the board, the CAE should present it to senior management.
    • DThe internal audit plan should be presented to the board during a meeting without senior management present.

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    Answer: B

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IIA-CIA-PART2 practice, question 361. 475 questions available.