[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 271-280

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QUESTION 271

The chief audit executive is revising policies relating to independence and objectivity of the internal audit activity. Which of the following would be a part of the revised policies document?

 

A.

Any auditor that received high-value gifts from an audit client must report it to their supervisor.

B.

Any auditor that received gifts of low-value promotional items from an audit client must report it to their supervisor.

C.

An auditor does not need to complete an annual conflict of interest form unless the auditor’s independence status has changed.

D.

An auditor may provide consulting services relating to operations for which they had previous responsibilities.

 

Correct Answer: D

 

 

QUESTION 272

Which of the following results from computer assisted audit techniques provides the most significant indication that additional audit work is needed?

 

A.

Several exact matches were found when vendor and employee addresses were compared.

B.

The sum of credit entries on the bank statement did not equal the sum of collections for the same period.

C.

Sorting the check register file by vendor name identified missing sequences of check numbers.

D.

Matching the accounts payable transaction file with the purchase order request file resulted in many differences between the person requesting the purchase order and the person authorizing payment.

 

Correct Answer: A

 

 

QUESTION 273

Which of the following might alert an internal auditor to the possibility of fraud in a division?

 

1. The division is not scheduled for an external audit this year.

 

2. Sales have increased by 10 percent.

 

3. A significant portion of management’s compensation is directly tied to reported net income of the division.

 

A.

1 only

B.

3 only

C.

1 and 2 only

D.

1, 2, and 3

 

Correct Answer: B

 

 

QUESTION 274

Which of the following is a common error made in designing multiple-choice questions in a survey questionnaire?

 

A.

Unipolar rather than bipolar labels are used for the response categories.

B.

The alternative response categories for the questions are not mutually exclusive.

C.

Likert scaling is used instead of semantic differential scaling.

D.

The question itself uses terms that are very familiar to the respondent.

 

Correct Answer: B

QUESTION 275

When planning an audit engagement,what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?

 

A.

Impact of and exposure to fraud.

B.

Existence of evidence of fraud.

C.

Organizational structure.

D.

Management’s risk appetite.

 

Correct Answer: A

 

 

QUESTION 276

An internal auditor has taken an attributes sample of a bank’s existing loan portfolio. Out of a sample of 60 loans, the auditorfound:

 

clip_image002Four that were not properly collateralized.

clip_image002[1]Five that were not in compliance with bank policies (other than lack of collateralization).

clip_image002[2]Four that were part of a related-party group,but were set up as separate loan entities.

clip_image002[3]Of the 60 loans selected in the sample,these errors were noted on a total of 10 loans.

clip_image002[4]Several loans had multiple problems.

 

Which of the following conclusions can the auditor reach from these observations?

 

1. There is sufficient evidence that fraudulent activity is taking place by one or more of the bank’s lending officers.

 

2. The financial statements will be misstated as a result of these actions.

 

3. There are significant noncompliance audit findings that should be reported.

 

A.

3 only

B.

1 and 2 only

C.

1 and 3 only

D.

2 and 3 only

 

Correct Answer: A

 

 

QUESTION 277

Which of the following would be a violation of the objectivity of a certified internal auditor?

 

1. Accepting a motivational book from a major vendor.

 

2. Attending a professional sporting event as the guest of a corporate supplier.

 

3. Performing an internal audit engagement for a division 18 months after having controllership responsibility for that division.

 

4. Designing and implementing a corporate-wide utilities cost containment program.

 

A.

1 and 3 only

B.

2 and 3 only

C.

2 and 4 only

D.

1, 3, and 4 only

 

Correct Answer: C

 

 

QUESTION 278

Which aspect of the audit function would be most impacted by a lack of coordination between an organization’s internal and external auditors?

 

A.

Responsiveness.

B.

Timeliness.

C.

Effectiveness.

D.

Efficiency.

 

Correct Answer: D

 

 

QUESTION 279

Which of the following statements is correct with regard to risk management?

 

A.

The board’s responsibility for risk management cannot be assigned to a board committee, such as a board risk committee.

B.

The chief audit executive is accountable to the board for designing, implementing and monitoring the risk management process.

C.

The total process of risk management, which includes a related system of internal control, is the responsibility of the board.

D.

The finance director is responsible for the overall implementation of the risk management process.

 

Correct Answer: C

 

 

QUESTION 280

Which of the following statements best describes the competency requirement for an auditor regarding fraud risks encountered in an engagement execution?

 

A.

The auditor should be able to have comparable competencies of a person whose primary responsibility is detecting and investigating fraud.

B.

The auditor must have sufficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization.

C.

The auditor is not expected to have any competency requirement regarding fraud since the role of investigating and detecting fraud belongs to other functions in the organization.

D.

The auditor must be able to have an appreciation of the fundamentals of fraud detection and investigation techniques.

 

Correct Answer: B

 

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