[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 361-370

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QUESTION 361

In an audit engagement, a group of internal auditors used an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps in the computer software,and then developed test data. Over the course of 24 months, they submitted test transactions on a regular basis but did not find any differences between payroll processing and integrated test facility results. Based on the data,what can the auditors conclude?

 

A.

Payments to employees during the 24-month period were all correct.

B.

The computer application and its control procedures correctly processed payroll over the 24-month period.

C.

Employees are properly submitting their hours to payroll.

D.

The computer software is flawed.

 

Correct Answer: B

 

 

 

QUESTION 362

COBIT is primarily designed to:

 

A.

Define auditing standards for information technology auditors.

B.

Satisfy information technology regulatory requirements.

C.

Provide guidance to govern information technology activities.

D.

Assist technology professionals in interpreting technological specifications.

 

Correct Answer: C

 

 

QUESTION 363

While conducting an audit, an internal auditor notices an unusual increase in sales among a small number of units within the organization. The units also experienced persistent negative cash flows despite reported earnings and earnings growth. Which type of fraud do the auditor’s findings most likely indicate?

 

A.

Employee collusion with customer organizations.

B.

Improper asset valuation.

C.

Inventory theft.

D.

Fictitious revenues.

 

Correct Answer: D

 

 

QUESTION 364

What would a chief audit executive most likely recommend that an internal auditor do to prepare for an increased demand in advisory services?

 

A.

Participate in continuing professional development activities,such as training courses or rotations into other business units.

B.

Review records from prior engagements to determine how best to align the current engagement activities with prior activities.

C.

Expand the scope of every future internal audit activity to all parts of the organization,rather than only the departments identified in the activity’s charter.

D.

Specialize in one specific aspect of internal auditing,such as risk assessment or information technology controls.

 

Correct Answer: A

 

 

QUESTION 365

Which of the following is the responsibility of an internal auditor?

 

1. Assist operating management in implementing audit recommendations.

 

2. Provide management with value-added analysis to improve operations.

 

3. Become an advocate for changes to the internal audit activity charter.

 

4. Disclose non-financial risks that may be identified during the course of an engagement.

 

A.

1 and 3 only

B.

2 and 4 only

C.

1, 2, and 4 only

D.

1, 2, 3, and 4

 

Correct Answer: B

 

 

QUESTION 366

Which of the following methods is not valid for completing continuing professional education hours?

 

A.

Attending technical session meetings held by state auditing organizations.

B.

Completing all audit engagements in accordance with the Standards.

C.

Publishing an article on the organization’s internal audit department.

D.

Participating in a formal in-house training program.

 

Correct Answer: B

 

 

QUESTION 367

A senior manager asks the chief audit executive (CAE) to explain why statistical sampling is the best method to use in conducting an internal audit. Which advantages should the CAE point to in order to justify the internal audit activity’s (IAA) use of statistical sampling?

 

A.

Statistical sampling sets limits on resources used for the IAA, allows for a subjective interpretation of the IAA’s sampling results, and supports. The Institute of Internal Auditors’ requirements for using questionnaires as a sampling tool.

B.

Statistical sampling allows for evaluation of all organizational data at once, increases the likelihood that risks are immediately identified, and does not require a level of tolerable misstatement or margin of error.

C.

Statistical sampling allows for the selection of a minimum sample size, provides a quantitative expression of the IAA’s sampling results, and supports extrapolation.

D.

Statistical sampling itself identifies root causes of issues, utilizes a qualitative method for analyzing results, and supports engagement objectives through the use of external benchmarking.

 

Correct Answer: C

 

 

QUESTION 368

Feedback on engagements from audit clients, annual benchmarking of the internal audit activity’s (IAA’s) performance against best practice, and analyses of project budgets and audit plan completion are all tools that can best be used by the IAA for which purpose?

 

A.

Completing internal assessments.

B.

Determining the level of residual risk.

C.

Identifying conflicts of interest.

D.

Developing control processes.

 

Correct Answer: A

 

 

 

 

 

QUESTION 369

The chief audit executive needs to revise the internal audit activity’s (IAA) charter. The revision must address the element of authority. Which of the following statements meets this requirement?

 

A.

The IAA shall identify and assess all potential risks to the operations of the organization.

B.

The IAA shall be granted access to all records relevant to the performance of its duties.

C.

Following its assessment, the IAA shall recommend risk control processes and resource management strategies.

D.

The IAA shall deliver an initial report of its findings to the organization’s board within 120 days of the beginning of the engagement.

 

Correct Answer: B

 

 

QUESTION 370

According to the Standards,which of the following is not a responsibility of the audit committee?

 

A.

Appointment and performance of the chief audit executive.

B.

Reviewing internal audit staffing promotions and salary increases.

C.

Review, assessment and approval of the annual audit plan.

D.

Resolving any disagreements between management and internal audit.

 

Correct Answer: B

 

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