IIA-CIA-PART2 practice questions 411–420

1. Question 411 · 475 in bank

   Which of the following approaches would best help an internal auditor determine whether a retailer's database of 100,000 customers has any duplicate accounts?

   • AStratifying the customer information.
   • BExtracting the customer information.
   • CFiltering the customer information.
   • DSorting the customer information.

   Show answer

   Answer: C

   Next question

2. Question 412 · 475 in bank

   organization's processes, developed a scale to assess each risk, and allocated the relative importance of each risk. Which of the following approaches did the auditor take?

   • ATop-down approach.
   • BProcess-matrix approach.
   • CRisk-factor approach.
   • DBottom-up approach.

   Show answer

   Answer: B

   Next question

3. Question 413 · 475 in bank

   Which of the following attribute sampling methods would be most appropriate to use to measure the total misstatement posted to an accounts payable ledger?

   • AStop-or-go sampling.
   • BProbability-to-proportional size sampling.
   • CClassical variable sampling.
   • DDiscovery sampling.

   Show answer

   Answer: C

   Next question

4. Question 414 · 475 in bank

   Which of the following should be described in the recognition element of a typical internal audit report?

   • APositive aspects of the process or area under review.
   • BA brief synopsis of the process or area under review.
   • COutcomes and ratings of the process or area under review.
   • DReport issuance and the communication process of the engagement.

   Show answer

   Answer: B

   Next question

5. Question 415 · 475 in bank

   Which statistical sampling approach would an internal auditor typically utilize if she wishes to test for fraud and the expected deviation rate is very low?

   • AStratified sampling.
   • BAttribute sampling.
   • CDiscovery sampling.
   • DHaphazard sampling.

   Show answer

   Answer: C

   Next question

6. Question 416 · 475 in bank

   Which of the following would most likely prompt special notification from the chief audit executive to senior management?

   • AOperational management has decided to weigh an audit issue against the organization's risk tolerance.
   • BA control's inaccurate operation has materially impacted the accuracy of the prior year's financial statements.
   • COccurrences of asset misappropriation have been identified as a result of an ineffective operational control design.
   • DThe controls that management performed to confirm compliance with health and safety standards were not systematically documented.

   Show answer

   Answer: B

   Next question

7. Question 417 · 475 in bank

   When a significant finding is noted early during a review of the accounts payable function, which next course of action is best for communicating the issue?

   • AInform accounting management via an interim memorandum update.
   • BNote the item in the workpapers for inclusion in the final audit report.
   • CCall a meeting and discuss the issue with the audit committee.
   • DAlert the CEO as soon as the issue is discovered.

   Show answer

   Answer: A

   Next question

8. Question 418 · 475 in bank

   An internal auditor wants to compare performance information from one quarter to another. Which analytical procedure would the auditor use?

   • ARatio analysis.
   • BTrend analysis.
   • CVertical analysis.
   • DBenchmarking analysis.

   Show answer

   Answer: A

   Next question

9. Question 419 · 475 in bank

   An internal auditor wanted to determine whether the organization's 200 employees are charging their work hours accurately to the correct project The internal auditor selected a sample of 30 employee time reports for testing. Based on the testing, the internal auditor determined the following: - 5 time reports were incorrect. - 21 time reports were correct. - 4 time reports were not supported. Which of the following conclusions is appropriate?

   • AThe organization has significant flaws in its reporting of employee time, which could lead to the overstatement of project labor costs. The organization's failure to report accurate and complete employee time could lead to potential fraud and abuse.
   • BThe organization needs to ensure that all reporting of employee time is accurate and complete for each of its projects. By doing so, the organization can minimize potential issues related to overstating employee times and labor project costs.
   • CThe organization overstated project costs due to inaccurate and incomplete reporting of employee time charged to the affected accounts. As a result, the organization cannot ensure all projects costs are accurately reported to stakeholders.
   • DThe organization generally ensured that employee hours charged to each project were accurate and complete. However, there were instances of employee time reports that were incorrect or not supported to justify the multiple project labor costs.

   Show answer

   Answer: D

   Next question

10. Question 420 · 475 in bank

    The chief audit executive (CAE) determined that the residual risk identified in an assurance engagement is acceptable. When should this be communicated to senior management?

    • AWhen the CAE reports the audit outcome to senior management.
    • BWhen the residual risk is identified, before the engagement is complete.
    • CImmediately, as residual risk should be communicated as soon as possible.
    • DWhen management of the area under review has resolved and mitigated the residual risk.

    Show answer

    Answer: A

    Next question

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

IIA-CIA-PART2 practice, question 411. 475 questions available.