[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 231-240

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QUESTION 231

Which of the following are acceptable resources for a chief audit executive to use when developing a staffing plan?

 

1. Co-sourcing arrangements.

 

2. Employees from other areas of the organization.

 

3. The organization’s external auditors.

 

4. The organization’s audit committee members.

 

A.

1 only

B.

1 and 2 only

C.

2 and 3 only

D.

1,2,and 4 only

 

Correct Answer: B

 

 

QUESTION 232

When comparing an organization’s current performance to that of the prior year,an internal auditor found that:

 

clip_image002Total labor costs had increased.

clip_image002[1]More overtime costs had been incurred.

clip_image002[2]The total number of workers had increased.

clip_image002[3]Net income was 10 percent lower.

 

Based solely on this information,which of the following is a valid conclusion?

 

A.

Net income per worker decreased.

B.

Wage rates increased.

C.

Worker efficiency decreased.

D.

Total labor hours increased.

 

Correct Answer: A

 

 

QUESTION 233

According to the IIA Code of Ethics,the deliberate omission of relevant information from an audit report would violate which principle?

 

A.

Honesty.

B.

Competency.

C.

Responsibility.

D.

Integrity.

Correct Answer: D

 

 

QUESTION 234

During a review of a division’s operations,an internal auditor notes that sales and customer base are unchanged,while inventory and gross margin have increased significantly. Which of the following audit procedures would be most relevant in substantiating management’s assertion that the gross margin increase is due to increased efficiency in manufacturing operations?

 

A.

Obtain a physical count of inventory.

B.

For a sample of products,compare costs-per-unit this year to those of last year,test cost build-ups,and analyze standard cost variances.

C.

Take a physical inventory of equipment to determine if there were significant changes.

D.

Select a sample of finished goods inventory and trace raw materials cost back to purchase prices in order to determine the accuracy of the recorded raw materials price.

 

Correct Answer: B

 

 

QUESTION 235

Which of the following should an internal auditor possess in order to fulfill the responsibilities of the internal audit activity?

 

A.

Proficiency in applying management principles in order to stand in for the chief financial officer.

B.

An understanding of management principles in order to evaluate deviations from good practices.

C.

An appreciation of internal audit standards in order to recognize problems.

D.

Proficiency in accounting principles in order to conduct fraud investigations.

 

Correct Answer: B

 

 

QUESTION 236

In which of the following situations would fishbone diagrams be most useful?

 

A.

The problem is complicated and the root cause is unknown.

B.

Team members cannot effectively communicate with each other.

C.

The team is too small for brainstorming to be effective.

D.

The team consists of experts who can resolve problems without much difficulty.

 

Correct Answer: A

 

 

QUESTION 237

A major corporation is considering significant organizational changes. Which of the following groups would not be responsible for implementing these changes?

 

A.

Employees.

B.

Senior management.

C.

Common stockholders.

D.

Outside consultants.

 

Correct Answer: C

 

QUESTION 238

Which of the following is least likely to be considered material in an audit of a medium-sized organization?

 

A.

A $1,000 overstatement of the accrued-vacation payable account.

B.

A violation of a government statute.

C.

Fraud resulting in a cash loss to the organization.

D.

An underpayment to the employee pension fund.

 

Correct Answer: A

 

 

QUESTION 239

During an audit of financial contracts,an internal auditor learns that a relative has a substantial loan with the organization. The auditor should:

 

A.

Exclude the relative’s information from the audited work and proceed with the audit engagement.

B.

Proceed with the audit engagement but disclose in the engagement final communication that the relative is a customer.

C.

Immediately withdraw from the audit engagement.

D.

Notify management and the chief audit executive (CAE) and have the CAE determine whether the auditor should continue with the audit engagement.

 

Correct Answer: D

 

 

QUESTION 240

After completing a net present value (NPV) calculation on a proposed project,an analyst explores the change in NPV with changes in the interest rate. This additional analysis is referred to as:

 

A.

Decision analysis.

B.

Simula-tion.

C.

Sensitivity analysis.

D.

Variance analysis.

 

Correct Answer: C

 

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