[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 41-50

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QUESTION 41

Which of the following is not an appropriate type of coordination between the internal audit activity and regulatory auditors?

 

A.

Regulatory auditors share their perspective on risk management,control,and governance with the internal auditors.

B.

Internal auditors perform fieldwork at the direction of the regulatory auditors.

C.

Internal auditors review copies of regulatory reports in planning related internal engagements.

D.

Regulatory and internal auditors exchange information about planned activities.

 

Correct Answer: B

 

 

QUESTION 42

Which of the following steps would not be included in a program of selecting and developing human resources for an internal audit department?

 

A.

Scheduling periodic meetings with individual auditors, during which the chief audit executive provides counsel regarding each auditor’s performance and professional career development.

B.

Establishing an internal review team to assess the auditors’ and audit department’s compliance with standards, level of audit effectiveness, and compliance with departmental policy.

C.

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

D.

Establishing in-house training programs and requiring continuing education for audit staff.

 

Correct Answer: B

 

 

QUESTION 43

Which of the followin
g is a benefit from reduced testing during a particular phase of an audit engagement?

 

A.

The size of the internal audit activity can be reduced.

B.

There is less concern about assessing inherent risk.

C.

The level of planned audit risk is lowered.

D.

Additional audit hours are available for pursuing other engagement objectives.

 

Correct Answer: D

 

 

QUESTION 44

A high-volume retailer of consumer goods has used point-of-sale data to record sales and update inventory records for several years. When price changes are scheduled,corporate headquarters downloads a price change file to a computer server system at each store. Each store’s assistant manager is responsible for checking the server for downloads and running the program that updates the store’s price file at the authorized price update time. In comparison with having headquarters initiate the price update centrally, this approach to price updating will most likely:

 

A.

Decrease the risk that customers will be undercharged consistently for sales items.

B.

Decrease the risk that item prices will sometimes be inaccurate.

C.

Increase the risk that customers will be undercharged consistently for sales items.

D.

Increase the risk that item prices will sometimes be inaccurate.

 

Correct Answer: D

 

 

QUESTION 45

Which source of audit evidence would provide the least value in flowcharting an organization’s purchasing process?

 

A.

An interview with the purchasing supervisor.

B.

A review of a sample of purchase orders which were completed during the last month.

C.

A review of the purchasing policies and procedures manual.

D.

A walk-through of the process with a member of the purchasing staff.

 

Correct Answer: B

 

 

QUESTION 46

Two individuals are being considered for an audit team that is to perform a highly technical review. Which of the following situations would preclude selection of the individual for the audit due to an objectivity concern?

 

I. Person A is a member of the internal audit staff and has the required technical skills. Person A participated in a controls review of the system to be audited when it was being developed.

 

II. Person B is a technical specialist who understands the audit area but is not a member of the internal audit staff. Although person B has personal credibility in the information systems department to be audited,person B works for another department in the organization.

 

A.

I only

B.

II only

C.

Both I and II.

D.

Neither I nor II.

 

Correct Answer: D

 

 

QUESTION 47

A manufacturer uses a materials requirements planning (MRP) system to track inventory, orders, and raw materials requirements. What condition should an auditor sear
ch for in the MRP database if a preliminary assessment indicated that inventory is understated?

 

I. Item cost set at zero.

II. Negative quantities on hand.

 

III. Order quantity exceeding requirements.

 

IV. Inventory lead times exceeding delivery schedule.

 

A.

I and II only

B.

I and IV only

C.

II and IV only

D.

III and IV only

 

Correct Answer: A

 

 

QUESTION 48

An objective for an audit of a medical research corporation is to evaluate management’s controls to ensure that timely reports are submitted to sponsors of contracted research projects. In planning the audit to achieve this objective, the auditor should begin by:

 

A.

Reviewing policies and procedures.

B.

Interviewing a group of research managers.

C.

Observing report preparation in a number of laboratories.

D.

Sending a questionnaire to a sample of research sponsors.

 

Correct Answer: A

 

 

QUESTION 49

At the beginning of fieldwork in an audit of investments, an internal auditor noted that the interest rate had declined significantly since the engagement work program was created. The auditor should:

 

A.

Proceed with the existing program since this was the original scope of work that was approved.

B.

Modify the audit program and proceed with the engagement.

C.

Consult with management to verify the interest rate change and proceed with the engagement.

D.

Determine the effect of the interest rate change and whether the program should be modified.

 

Correct Answer: D

 

 

QUESTION 50

Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?

 

A.

Auditors must be given assignments based primarily upon their years of experience.

B.

All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.

C.

Tasks must be assigned to the audit team member who is most qualified to perform them.

D.

All audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.

 

Correct Answer: B

 

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