[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 391-400

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QUESTION 391

Which of the following situations would most likely result in the auditor in charge (AIC) recommending that the staff auditor further investigate non-compliant items?

 

A.

A staff auditor conducted a test of 25 non-statistical sample items, selected judgmentally, and 5 are not in compliance with organizational policy.

B.

A staff auditor conducted a test of 85 non-statistical sample items,selected randomly, and 5 are not in compliance with organizational policy.

C.

Before the staff auditor conducted a test of statistical sample items, the AIC was already aware of underlying control weaknesses.

D.

A staff auditor conducted a test of statistical sample items, the results of which fall below the acceptable error rate by less than one percentage point.

 

Correct Answer: A

 

 

QUESTION 392

Which of the following is not considered one of the most common red flags for perpetrators of fraud?

 

A.

Excessive control issues.

B.

Repeat performance issues.

C.

Unusually close association with customers.

D.

Experiencing financial difficulty.

 

Correct Answer: B

QUESTION 393

Which of the following represents the most useful function of inventory turnover analysis?

 

A.

Identifying excess inventory,including obsolete inventory.

B.

Determining the best supplier of raw materials based on cost comparison.

C.

Creating new staffing positions for inventory support.

D.

Developing more efficient methods for manufacturing finished products.

 

Correct Answer: A

 

 

QUESTION 394

A chief audit executive (CAE) is planning to issue an annual report concluding on the overall effectiveness of the organization’s internal control system. According to the Standards,which of the following is likely the most significant challenge facing the CAE when creating the report?

 

A.

The opinion must include difficult to measure risks such as the risks of management override of controls, and collusion among dishonest personnel.

B.

The opinion is dependent on complex analyses of numerous internal audit engagements carried out over the prior year.

C.

The opinion is only issued once a year, limiting its usefulness.

D.

Assessing control effectiveness is complicated by inherent risks.

 

Correct Answer: B

 

 

QUESTION 395

According to IIA guidance,which of the following risk management process evaluation findings would the internal audit activity consider most effective?

 

A.

Relevant risk information is captured and communicated in a periodic manner to management.

B.

Risk management processes are monitored through an annual assessment.

C.

Risk responses align with the organization’s risk appetite.

D.

Strategic risks with low residual values are continuously monitored.

 

Correct Answer: C

 

 

QUESTION 396

For a bank handling large amounts of cash,which of the following types of control would be the most effective to use?

 

A.

Detective controls.

B.

Corrective controls.

C.

Preventive controls.

D.

Directive controls.

 

Correct Answer: C

 

 

 

 

 

QUESTION 397

Which of the following would be outside the scope of acquiring and developing human resources for an internal audit department?

 

A.

Requiring audit staff to participate in continuing education activities.

B.

Writing job descriptions for audit staff,audit managers,and other auditing positions.

C.

Conducting individual counseling sessions regarding professional development and performance.

D.

Evaluating auditors’ compliance with standards and level of audit effectiveness.

 

Correct Answer: D

 

 

QUESTION 398

Which domain of the COBIT framework addresses the maintenance and change management of existing systems to ensure alignment with business needs and objectives?

 

A.

Plan and organize.

B.

Deliver and support.

C.

Monitor and evaluate.

D.

Acquire and implement.

 

Correct Answer: D

 

 

QUESTION 399

Which of the following actions would compromise an internal auditor’s objectivity?

 

A.

Preparing bank reconciliations.

B.

Reviewing procedures before they are implemented.

C.

Auditing an activity for which the auditor had responsibility two years ago.

D.

Receiving a promotional pen from a supply available to all employees.

 

Correct Answer: A

 

 

QUESTION 400

In selecting a team to perform an internal audit of a purchasing operation, which of the following characteristics would not preclude an auditor from being selected?

 

1. The auditor’s spouse is employed by the clerical section of the purchasing records unit.

 

2. The auditor had been a purchasing agent five years earlier.

 

3. The auditor’s family owns a business that regularly sells goods to the organization.

 

4. The auditor has received a desk calendar as a promotional gift from a vendor.

 

A.

1 and 3 only

B.

1 and 4 only

C.

2 and 3 only

D.

2 and 4 only

 

Correct Answer: D

 

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