[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 211-220

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QUESTION 211

New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management’s data and information provide:

 

A.

Feedback control data.

B.

Irrelevant and argumentative information.

C.

Evidence that the new credit policies do not meet the stated corporate objective to improve collections.

D.

A statistically valid conclusion about the impact of the new credit policies on customer goodwill.

 

Correct Answer: A

 

 

QUESTION 212

Which of the following is the primary advantage of using a computer assisted audit technique (CAAT) to provide a higher level of assurance?

 

A.

CAATs can select an appropriate sample size for testing and thus provide higher level of assurance.

B.

CAATs are more objective than the traditional methods in interpreting the results.

C.

CAATs can examine the whole of population of transactions,rather than a sample,in order to identify exceptions and trends.

D.

CAATs can process the results faster and thus give a higher level of assurance.

 

Correct Answer: C

 

 

 

 

QUESTION 213

How should management obtain assurance that employees are complying with theorganization’s security policy?

 

A.

Regularly conduct independent reviews of employees’ security practices.

B.

Routinely survey staff so that information related to security practices can be submitted anonymously.

C.

Rely on exception reports to identify errors.

D.

Enforce a policy that requires all employees to sign a statement that they will adhere to the organization’s security policies.

 

Correct Answer: A

 

 

QUESTION 214

An internal auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:

 

clip_image002“A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted.”

clip_image002[1]The auditor did not place any audit verification symbols on this workpaper.

 

Which of the following changes would most improve the auditor’s workpaper?

 

A.

Use of audit verification symbols to show that each file was examined.

B.

Removal of the employee names to protect their confidentiality.

C.

Justification for the sample size.

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Listing of the actual documents examined for each employee.

 

Correct Answer: C

 

 

QUESTION 215

A company’s chief audit executive determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following actions would be the least acceptable?

 

A.

Notify the audit committee of the problem and consult with them regarding outsourcing the audit engagement to a qualified external auditing firm.

B.

Determine the requisite knowledge needed and obtain the proper training for auditors if such training is available within the appropriate time framework outlined by the audit committee.

C.

Notify the audit committee of the problem and assign the most competent auditors to perform the audit engagement.

D.

Employ the skills of a financial derivatives expert to consult on the project,and supplement the consulting with a local seminar on financial derivatives.

 

Correct Answer: C

 

 

 

 

 

 

 

QUESTION 216

A receiving department receives copies of purchase orders for use in identifying and recording inventory receipts. The purchase orders list the name of the vendor and the quantities of the materials ordered. A possible error that this system could allow is:

 

A.

Payment to unauthorized vendors.

B.

Payment for unauthorized purchases.

C.

Overpayment for partial deliveries.

D.

Delay in recording purchases.

 

Correct Answer: C

 

 

QUESTION 217

A chief audit executive (CAE) submits internal audit activity (IAA) plans and information about significant interim changes to senior management and the board for review. Which other piece of information should the CAE provide to senior management and the board?

 

A.

Identification of proposed consultants and support staff for the IAA.

B.

The most recent engagement of each member of the audit staff and its duration.

C.

The CAE’s preferred statistical analysis methods and relevant software to be utilized.

D.

Resource requirements and resource limitations.

 

Correct Answer: D

 

 

QUESTION 218

An external quality assurance review which was authorized by the chief audit executive (CAE) indicated significant findings from the Standards. To whom should the final results of the quality assurance review be reported?

 

A.

Confidentially to the CAE only

B.

The CAE with copies to the board and senior management.

C.

To the board with copies to the external auditor or regulatory oversight body.

D.

To the senior management with a copy to the board.

 

Correct Answer: B

 

 

QUESTION 219

An organization’s sales professionals are potentially abusing the use of cellular phones,resulting in an alarming increase in telephone expenses. Which of the following controls is least likely to curb this abuse?

 

A.

Developing periodic reports to management that show type, length, and number of calls per sales professional, with related totals and comparisons.

B.

Requiring sales professionals to pay monthly cellular phone bills and subsequently submit only business calls for reimbursement using an expense report process.

C.

Requiring sales managers to approve monthly bills prior to payment, explain budget variances, and explain increases from previous periods.

D.

Requiring authorization of the cellular phone bill payment by the manager of the telecommunications department.

 

Correct Answer: D

 

 

QUESTION 220

Which of the following risk factors is most subjective?

 

A.

Changes in staff,systems,or the environment.

B.

Prior audit findings.

C.

Size of the unit being audited.

D.

Competency of operating management.

 

Correct Answer: D

 

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