[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 261-270

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QUESTION 261

To develop greater internal auditing expertise,the chief audit executive (CAE) has been assigning the same relatively inexperienced team of internal auditors to a series of engagements spanning several months. Is this practice consistent with the Standards?

 

A.

Yes. The CAE is promoting the professional development of the staff.

B.

Yes. The experience will quickly build specialized skills and competencies.

C.

No. The team should collectively possess the competencies appropriate for the engagements.

D.

No. Teams should be comprised of both experienced and inexperienced auditors.

 

Correct Answer: C

 

 

QUESTION 262

Which of the following statements is true about visual observation during an audit engagement?

 

1. Visual observations should not be documented as the facts have not been substantiated.

 

2. Complex conditions observed should be verified prior to communicating observations to management.

 

3. Visual observations can be used to detect ineffective controls,idle resources,and safety hazards.

 

4. Visual observation can be used during both preliminary survey and fieldwork stages of the audit engagement.

 

A.

1 and 2 only

B.

3 and 4 only

C.

1, 2, and 4 only

D.

2, 3, and 4 only

 

Correct Answer: D

 

 

QUESTION 263

Within the internal audit process,which of the following is not a significant advantage of employing a control model?

 

A.

It provides guidance on identifying control deficiencies for each internal audit engagement.

B.

It recognizes the need to evaluate both hard and soft controls.

C.

It assists internal auditors in assessing the achievement of management’s objectives.

D.

It validates the findings and recommendations of the internal audit.

 

Correct Answer: D

 

 

 

 

 

 

QUESTION 264

A chief audit executive (CAE) of a major retailer has engaged an independent firm of information security specialists to perform specialized internal audit activities. The CAE can rely on the specialists’ work only if it is:

 

A.

Performed in accordance with the terms of the contract.

B.

Carried out in accordance with the Standards.

C.

Performed under the supervision of the information technology department.

D.

Carried out using standard review procedures for retailers.

 

Correct Answer: B

 

 

QUESTION 265

During the planning phase of an audit of suspected overbilling on contracts for security services, an internal auditor should perform all of the following except:

 

A.

Interview an official of the security services company to determine the cause of recent increases in billings for services.

B.

Interview the manager who requested the audit engagement.

C.

Obtain a copy of the contract between the two organizations.

D.

Prepare an engagement program.

 

Correct Answer: A

 

 

QUESTION 266

Which of the following would most likely function as a detective control?

 

A.

Security dogs.

B.

Alert employees.

C.

Insurance claims.

D.

Cycle counts.

 

Correct Answer: D

 

 

QUESTION 267

Which of the following sources of evidence would be least persuasive regarding potential waste and inefficiency on the part of a contractor?

 

A.

The contractor’s certification that it has not incurred any waste or inefficiencies.

B.

A walk-through of the contractor’s manufacturing and development facilities.

C.

An examination of the nature of contract expenses incurred.

D.

A comparison of contract expenses with those of similar projects.

 

Correct Answer: A

 

 

 

 

 

 

QUESTION 268

One of an organization’s quality objectives is to reduce the amount of rework needed in the production cycle. Which of the following controls would be the least effective in achieving this objective?

 

A.

Machinery is routinely maintained to avoid production malfunctions.

B.

Employees are rewarded for suggestions that lead to quality improvements.

C.

Quality inspectors are assigned to identify any defects in the finished product.

D.

Daily reconciliations are performed between finished goods and the number of rejects.

 

Correct Answer: D

 

 

QUESTION 269

The chief audit executive (CAE) wants to ensure that there are sufficient resources available to fulfill the responsibilities of the internal audit activity in the coming year. Which statement describes the most logical sequence of events for the CAE to undertake in order to achieve this objective?

 

A.

Confirm audit plan; confirm budget; review existing resources; identify outstanding resource requirements.

B.

Review prior year audit plan; review existing resources; confirm new audit plan; confirm budget.

C.

Confirm budget; review existing resources; obtain any new resources required; confirm new audit plan.

D.

Review results of prior year audit plan; adjust current plan accordingly; hire required resources; confirm budget.

 

Correct Answer: A

 

 

QUESTION 270

A company produces a product that consists of materials X,Y,and Z. The product is mixed so that:

 

clip_image002The quantity of material X used is one-third more than that of material Y.

clip_image002[1]The quantity of material Y used is one-fourth less than that of material Z.

 

If the company used 24,000 units of material Z during a period, what is a reasonable estimate of the amount of material X used?

 

A.

8,000

B.

18,000

< span lang="EN-US" style="font-family: ; mso-font-kerning: 0pt; mso-no-proof: yes">C.

24,000

D.

32,000

 

Correct Answer: C

 

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