[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 61-70

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QUESTION 61

An organization has a policy requiring two signatures on all checks written for amounts in excess of $10,000. When evaluating controls over disbursements, an auditor would conclude that a greater risk exists if.

 

A.

The auditor located two checks for $9,000 each that contained one authorized signature.

B.

The $10,000 was an immaterial amount to the organization and very few cash disbursements required an amount in excess of $10,000.

C.

The director of accounting was not one of the authorized signers.

D.

There were several instances in which successively numbered checks for amounts between $5,000 and $10,000 were made payable to the same vendor.

 

Correct Answer: D

 

 

QUESTION 62

An organization that outsources much of its internal audit work to an external service provider is planning for an external quality assessment. Which of the following options would accomplish this task and be in conformance with the Standards?

 

A.

External industry associate that performed a similar review for a supplier of the organization.

B.

A team from an independent entity that previously employed the chief audit executive of the organization.

C.

A team under the direction of the organization’s chief audit executive with validation by a former manager of the internal audit activity.

D.

The same external service provider because of its competency and experience with the organization.

 

Correct Answer: A

 

 

QUESTION 63

Which of the following best describes how the increased use of computerization may impact an auditor’s assessment of the risk of fraud?

 

A.

Access to assets may be available to information systems personnel as well as to computer users.

B.

Computer controls are generally less effective than human review.

C.

Overrides of key controls may require less collaboration.

D.

Audit trails are less effective.

 

Correct Answer: A

 

 

QUESTION 64

Which of the following is an example of sharing risk?

 

A.

An organization redesigned a business process to change the risk pattern.

B.

An organization outsourced a portion of its services to a third-party service provider.

C.

An organization sold an unprofitable business unit to its competitor.

D.

In order to spread total risk,an organization used multiple vendors for critical materials.

 

Correct Answer: B

 

 

QUESTION 65

Senior management at a financial institution has received allegations of fraud at its derivatives trading desk and has asked the internal audit activity to investigate and issue a report concerning the allegations. The internal audit activity has not yet developed sufficient proficiency regarding derivatives trading to conduct a thorough fraud investigation in this area. Which of the following courses of action should the chief audit executive (CAE) take to comply with the Standards?

 

A.

Engage the former head of the institution’s derivatives trading desk to perform the investigation and submit a report with supporting documentation to the CAE.

B.

Request that senior management allow a delay of the fraud investigation until the internal audit activity’s on-staff certified fraud examiner is able to obtain the appropriate training regarding the analysis of derivatives trading.

C.

Request that senior management exclude the internal audit activity from the investigation completely and instead contract with an external certified fraud examiner with derivatives experience to perform all aspects of the investigation and subsequent reporting.

D.

Contract with an external certified fraud examiner with derivatives experience to perform the investigation and subsequent reporting,with the chief audit executive approving the scope of the investigation and evaluating the adequacy of the work performed.

 

Correct Answer: D

 

 

 

 

 

QUESTION 66

In order to exercise due professional care as defined in the International Professional Practices Framework,an internal auditorshould:

 

I. Consider the probability of significant noncompliance in each audit engagement.

 

II. Perform assurance procedures with sufficient care to ensure that all risks are identified.

 

III. Weigh the cost of assurance against the benefits.

 

A.

I and IIonly

B.

I and IIIonly

C.

II and IIIonly

D.

I,II,and III.

 

Correct Answer: B

 

 

QUESTION 67

If an internal auditor discloses confidential information in response to a lawsuit,the internal auditor hasviolated.

 

A.

The IIA Code of Ethics.

B.

The Standards.

C.

Both the IIA Code of Ethics and the Standards.

D.

Neither the IIA Code of Ethics nor the Standards.

 

Correct Answer: D

 

 

QUESTION 68

Which of the following is a role of the board of directors in the governance process?

 

A.

Conduct periodic assessments of the organization’s governance systems.

B.

Obtain assurance concerning the effectiveness of the organization’s governance systems.

C.

Implement an effective system of internal controls to support the organization’s governance systems.

D.

Review and approve operational goals and objectives.

 

Correct Answer: B

 

 

QUESTION 69

Which of the following best describes the underlying premise of the COSO enterprise risk management framework?

 

A.

Management should set objectives before assessing risk.

B.

Every entity exists to provide value for its stakeholders.

C.

Policies are established to ensure that risk responses are performed effectively.

D.

Enterprise risk management can minimize the impact and likelihood of unanticipated events.

 

Correct Answer: B

 

QUESTION 70

During the planning phase of an audit of suspected overbilling on contracts for security services,an auditor should perform all of the following except:

 

A.

Interviewing an official of the security services company to determine the cause of recent increases in billings for services.

B.

Interviewing the manager who requested the audit engagement.

C.

Obtaining a copy of the contract between the two organizations.

D.

Preparing an engagement program.

 

Correct Answer: A

 

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