[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 321-330

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QUESTION 321

In which of the following circumstances would an internal auditor not need to search for other signs of fraud?

 

A.

The organization has an unusually high increase in costs.

B.

There are several substantial weaknesses with the internal control structure.

C.

Management institutes a policy of paying vendors promptly in order to avoid incurring penalty charges.

D.

One of the employees seems to have had a dramatic increase in their standard of living.

 

Correct Answer: C

 

 

QUESTION 322

Management has decided to invest significant capital in a new and innovative large computer system. They understand that they are one of the first organizations to implement this system, but they believe the benefits outweigh the uncertainty over the performance and reliability of the software. This decision best describes which aspect of risk management?

 

A.

Risk appetite.

B.

Risk tolerance.

C.

Residual risk.

D.

Inherent risk.

 

Correct Answer: A

 

 

QUESTION 323

Which of the following should be the first step that an internal auditor takes to establish data integrity when building an audit working copy of a large database?

 

A.

Search for anomalies in the extracted information.

B.

Verify that all required data was downloaded.

C.

Review the data for statistical patterns.

D.

Ensure that the data is efficiently organized within the database.

 

Correct Answer: B

 

 

QUESTION 324

Which of the following actions would have the greatest impact on the effectiveness of the internal audit activity?

 

A.

Appropriate compliance coverage in the annual audit plan.

B.

Annual review of the audit charter by management.

C.

Appropriate definition of internal audit scope and responsibility in the charter.

D.

Assurance of internal audit objectivity and organizational independence by the board.

 

Correct Answer: C

 

 

QUESTION 325

Which of the following are typical management control activities?

 

A.

Reconciliation, planning,and inquiry.

B.

Reconciliation, planning,and documentation.

C.

Reconciliation, inquiry, and documentation.

D.

Planning, inquiry, and documentation.

 

Correct Answer: C

 

 

QUESTION 326

A product manager occasionally overrides established purchasing policies in order to expedite the introduction of new products in a competitive industry. The manager’s overrides are:

 

A.

Unacceptable as they are not consistent with the purchasing policy.

B.

Only acceptable if the override is within the manager’s spending limit.

C.

Only acceptable if a policy governing such overrides is in place and they are reported.

D.

Acceptable due to the highly competitive nature of the industry.

 

Correct Answer: C

 

QUESTION 327

A small not-for-profit organization with limited resources is unable to adequately maintain appropriate segregation of duties. Considering the organization’s resource constraints, which type of controls would best mitigate segregation of duty risks?

 

A.

Application controls.

B.

Detective controls.

C.

Preventive controls.

D.

Compensating controls.

 

Correct Answer: D

 

 

QUESTION 328

According to IIA guidance,which of the following statements is correct concerning the knowledge, skills, and competencies required to fulfill the responsibilities of the internal audit activity (IAA)?

 

A.

The IAA must collectively possess the knowledge, skills, and competencies needed to perform all engagements.

B.

Each internal auditor in the IAA must possess the competencies required to detect and investigate fraudulent transactions.

C.

The IAA must not decline any engagement based solely on a lack the necessary knowledge, skills, and competencies to perform it.

D.

The competencies of external service providers must be assessed by the chief audit executive before the IAA can use external service providers’ work.

 

Correct Answer: D

 

 

QUESTION 329

While performing an internal audit engagement, an auditor reviews a flowchart of the organization’s purchasing function. Which of the following internal control weaknesses would the auditor be able to identify in the chart?

 

A.

That purchasing policies have not been updated.

B.

That supplier invoices are processed and paid before the goods are received.

C.

That the organization is not taking advantage of quantity discounts available from its suppliers.

D.

That authorization for payment of goods received has not been granted at the appropriate level.

 

Correct Answer: B

 

 

QUESTION 330

Which of the following types of information would an internal auditor expect to find in the supporting documentation for a high-level accounts payable process flowchart?

 

A.

A copy of the new customer request form.

B.

An overview of the steps for validating invoices.

C.

The number of payments paid before the due date of the invoice.

D.

The payment terms and credit limit of the vendor to be paid.

 

Correct Answer: B

 

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