IIA-CIA-PART2 practice questions 381–390

1. Question 381 · 475 in bank

   According to IIA guidance, which of the following best describes reliable information?

   • AReliable information is factual, adequate, and convincing so that a prudent, informed person would reach the same conclusions as the internal auditor.
   • BReliable information is the best attainable information through the use of appropriate engagement techniques.
   • CReliable information supports engagement observations and recommendations and is consistent with the objectives for the engagement.
   • DReliable information helps the organization and the internal audit activity meet its goals.

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   Answer: B

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2. Question 382 · 475 in bank

   According to IIA guidance, which of the following represents sufficient information?

   • AInformation that is factual, adequate, and convincing.
   • BInformation that is best attainable through the use of appropriate engagement techniques.
   • CInformation that supports engagement objectives and recommendations.
   • DInformation that helps the organization meet its goals.

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   Answer: A

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3. Question 383 · 475 in bank

   Which of the following will most likely support the completeness criterion of a stock sample that is to be included in an inventory account?

   • APeriodic reviews of the inventory’s obsolescence.
   • BShipment advices received by the accounting department.
   • CAn inventory count undertaken by warehouse personnel.
   • DThe inclusion of overhead costs in the inventory’s value.

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   Answer: C

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4. Question 384 · 475 in bank

   An internal auditor is using computer-assisted audit techniques to examine employee expenses across several divisions of the organization. Which of the following is true in this situation?

   • AThe data from various sources should remain segregated for easier analysis and discovery of anomalies.
   • BFraud detection techniques should be performed against full data populations.
   • CA reactive approach is best suited for fraud detection due to the effectiveness of tips and whistleblowing programs.
   • DRandom sampling is an effective method of detecting fraudulent transactions.

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   Answer: B

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5. Question 385 · 475 in bank

   Which of the following would be most appropriate to include in the scope of an operational audit of the check processing function?

   • AReview the applicable checks received logs for evidence of dual control.
   • BTest a sample of checks to ensure that they were properly posted to the customer’s account.
   • CReview the flow of work to determine whether the process is completed efficiently.
   • DReview the bank statement and validate that each check received is deposited into the bank account.

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   Answer: A

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6. Question 386 · 475 in bank

   Which of the following analytical procedures is most appropriate for an internal auditor to use to compare the level of employee adherence to standards in selected units of an organization against the organization’s preferred standard?

   • AReperformance.
   • BBenchmarking.
   • CTrend analysis.
   • DVertical analysis.

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   Answer: C

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7. Question 387 · 475 in bank

   A review of accounts receivable turnover represents which of the following manual audit procedures?

   • AConfirmation.
   • BReperformance.
   • CTrend analysis.
   • DRatio analysis.

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   Answer: B

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8. Question 388 · 475 in bank

   An audit reveals that a manager’s spouse is receiving paychecks, but is not employed by the organization. According to IIA guidance, which of the following actions should the internal auditor take?

   • AContact the external auditor and provide all relevant documentation.
   • BReport the finding the senior management in a timely manner, following the normal chain of command.
   • CMeet with the local manager to obtain more information on the finding before taking further action.
   • DBypass the normal chain of command and contact the board directly to report the finding.

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   Answer: B

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9. Question 389 · 475 in bank

   An internal auditor deploys an internal control questionnaire to obtain preliminary information during an audit of the sales process. Which of the following is the major setback of this method?

   • AQuestionnaire are generally inefficient.
   • BOnly limited information can be collected.
   • CIt is difficult to quantify the data obtained.
   • DThe method is of limited value as it is not independent.

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   Answer: C

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10. Question 390 · 475 in bank

    An internal audit develops an engagement observation related to an organization’s accumulation of large travel advances. The auditor observes that the organization’s procedures do not require justification for travel agencies greater than a specific amount. Which of the following best describes the organization’s procedures?

    • AA criterion of the organization’s accumulation of large travel advances.
    • BA condition of the organization’s accumulation of large travel advances.
    • CA consequence of the organization’s accumulation of large travel advances.
    • DA cause of the organization’s accumulation of large travel advances.

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    Answer: D

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IIA-CIA-PART2 practice, question 381. 475 questions available.