IIA-CIA-PART2 practice questions 371–380

1. Question 371 · 475 in bank

   Which of the following documents should an internal auditor include in the workpapers as the best evidence to support a finding that the organization overpaid employees for travel expenses?

   • AA copy of the organization’s established policies and procedures for authorizing travel expenses.
   • BAn analysis of resent travel vouchers of employees who were reimbursed by the organization.
   • CAn example of a travel voucher, including authorization, that would be acceptable to submit for reimbursement.
   • DA list of employees who are responsible for approving travel vouchers for payment.

   Show answer

   Answer: B

   Next question

2. Question 372 · 475 in bank

   Which of the following would be the most persuasive form of audit evidence regarding the performance of the accounts receivable department?

   • ADocumented policies and procedures of the accounts receivable process and organizational chart showing the employees responsible for each procedure.
   • BConfirmation with customers regarding the existence of receivables.
   • CCopies of contracts with key customers.
   • DA recently completed accounts receivable aging report.

   Show answer

   Answer: B

   Next question

3. Question 373 · 475 in bank

   During a review to verify the organization's compliance with relevant health, safety, and environmental regulations, an internal auditor noted that waste oil was not being stored and safeguarded as required. The auditor captured evidence of this on his mobile phone. How should this evidence be handled?

   • AThe internal auditor should ensure the phone is password protected to restrict access to the evidence.
   • BThe pictures should be sent to relevant regulatory authorities as evidence of the breach.
   • CThe internal auditor should transfer the pictures to the chief audit executive to be tied as evidence.
   • DThe pictures should be sent to the CEO and senior management as evidence of the breach.

   Show answer

   Answer: C

   Next question

4. Question 374 · 475 in bank

   An internal auditor was assigned to assess the risks related to the oil dispatch process. The auditor visited the oil dispatch facilities, met the manager responsible for oil sales, saw oil being loaded onto railway carriers, and talked to employees involved in the process. Which of the following best describes these audit testing methods?

   • AObtaining documentary evidence and performing questioning.
   • BConducting interviews and performing analytical procedures.
   • CPerforming onsite inspection and obtaining physical evidence.
   • DConducting physical observation and obtaining testimonial evidence.

   Show answer

   Answer: D

   Next question

5. Question 375 · 475 in bank

   Which of the following statements is true regarding the application of generalized audit software?

   • AObtaining access to relevant and reliable data is usually easy; however, importing the data into generalized audit software is typically a challenge
   • BAlthough generalized audit software enables internal auditors to rely less on judgmental sampling, analysis of large quantities of data is still a challenge
   • CUsing generalized audit software to perform audit tasks in different software and hardware environments requires considerable customization
   • DGeneralized audit software enables internal auditors to perform tests on data independently of the organization's IT personnel

   Show answer

   Answer: D

   Next question

6. Question 376 · 475 in bank

   An internal auditor noted that the organization's production facility experienced a machinery outage, because routine machinery maintenance was not performed timely. Senior management asked the auditor why the maintenance was delayed, and the auditor did not have an answer. Which of the following tools or approaches should the auditor have used to help him better understand the circumstances?

   • AA risk and control matrix
   • BA root cause analysis
   • CA spaghetti diagram
   • DA process map

   Show answer

   Answer: A

   Next question

7. Question 377 · 475 in bank

   Which of the following statements is true regarding a drawback of using internal control questionnaires (ICQs)?

   • AWhen internal auditors need to cover many control procedures, using ICQs is generally less than conducting observations and inspections.
   • BIt is generally difficult for internal auditors to compile appropriate ICQs for business activities that are governed by standardized operating procedures.
   • CICQs are inadequate to provide effective assurance on how organizational processes are executed in practice.
   • DIt is generally difficult for internal auditors to process completed questionnaires, because ICQs frequently elicit detailed comments and long answers from management.

   Show answer

   Answer: C

   Next question

8. Question 378 · 475 in bank

   An internal auditor tested an application control designed to prevent sales tax from being charged to government agencies. The test revealed that three out of 52 invoices to government agencies included sales tax. Which of the following is an accurate description of the application control?

   • AEffective and aligned.
   • BEfficient and effective.
   • CEfficient but not aligned.
   • DEfficient but not effective.

   Show answer

   Answer: B

   Next question

9. Question 379 · 475 in bank

   Which of the following is the best example of an audit engagement supervision activity?

   • AAn audit manager attending exit meetings.
   • BAn audit manager executing engagement procedures.
   • CAn audit manager documenting workpapers.
   • DAn audit manager identifying audit findings.

   Show answer

   Answer: A

   Next question

10. Question 380 · 475 in bank

    During the preliminary survey of the procurement department, an internal auditor noted a major control weakness in the organization’s ordering and receiving process. According to IIA guidance, which of the following is the most appropriate action the internal auditor should take?

    • AIssue a final report on the control weakness to senior management.
    • BBring the control weakness to the attention of the process owner for resolution.
    • CNote the control weakness for discussion during the exit meeting.
    • DCarry out an investigation of the control weakness for disciplinary action.

    Show answer

    Answer: C

    Next question

Keyboard:J Kmove between questionsA–Dselect an answerRshow or hide the answer← →change page

IIA-CIA-PART2 practice, question 371. 475 questions available.