[Free] Download New Updated (October 2016) IIA IIA-CIA-Part1 Real Exam 81-90

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QUESTION 81

Auditors 1, 2, and 3 work out of various offices. Each must be assigned to one, and only one, of three audit locations (A, B, or C). The cost of sending each auditor to each location is listed below:

 

Audit Locations

 

Auditor 1

 

A

 

B

 

C

 

Auditor 2

 

$200

 

$300

 

$400

 

Auditor 3

 

$400

 

$300

 

$600

 

Auditor 4

 

$200

 

$200

 

$500

 

The minimum cost with which this assignment can be accomplished is:

 

A.

$800

B.

$900

C.

$1,000

D.

$1,100

 

Correct Answer: B

 

 

 

QUESTION 82

An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if.

 

A.

The auditor notes strong indicators of a specific fraud involving this account.

B.

The company has relatively stable operations which have not changed much over the past year.

C.

The auditor would like to id
entify large, unusual, or non-recurring transactions during the year.

D.

The operating expenses vary in relation to other operating expenses, but not in relation to revenue.

 

Correct Answer: A

 

 

QUESTION 83

Which of the following should be incorporated in a risk management policy?

 

I. Boundaries and limit structures.

 

II. Requirements for reporting risk.

 

III. Risk authorities.

 

A.

I and IIonly

B.

I and IIIonly

C.

II and IIIonly

D.

I,II,and III.

 

Correct Answer: D

 

 

QUESTION 84

Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?

 

A.

Borrowers may not sign all required mortgage loan documentation.

B.

Fees paid by the borrower at the time of the loan may not be deposited in a timely manner.

C.

The bank’s loan documentation may not meet the government’s disclosure requirements.

D.

Loan officers may override the lending criteria established by senior management.

 

Correct Answer: D

 

 

QUESTION 85

Human resources and payroll are separate departments. Which of the following combinations would provide the best segregation of duties?

 

A.

Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.

B.

Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.

C.

Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee’s bank account.

D.

Payroll personnel add employees and enter employee bank account numbers but process hours only as approved by the human resources department. Paychecks are automatically deposited in the employee’s bank account.

 

Correct Answer: C

 

 

QUESTION 86

It would be appropriate for an internal audit activity to use consultants with expertise in health-care benefits when the internal audit activity is:

 

I. Conducting an audit of the organization’s estimate of its liability for post retirement benefits,which include health care benefits.

 

II. Comparing the cost of the organization’s health care program with that of other programs offered in the industry.

 

III. Training its staff to conduct an audit of health care costs in a major division of the organization.

 

A.

Ionly

B.

I and IIIonly

C.

II and IIIonly

D.

I,II,and III.

 

Correct Answer: D

 

 

QUESTION 87

The top three sales representatives for a company consistently include non-allowable charges on their expense reports. Line management is reluctant to deny reimbursement of the charges for fear of losing the sales representatives. This situation has the greatest negative impact on which of the following internal control components?

 

A.

Monitoring.

B.

Control environment.

C.

Information and communication.

D.

Control activities.

 

Correct Answer: B

 

 

QUESTION 88

According to the International Professional Practices Framework, internal auditors should possess which of the following competencies?

 

I. Proficiency in applying internal auditing standards, procedures,and techniques.

 

II. Proficiency in accounting principles and techniques.

 

III. An understanding of management principles.

 

IV. An understanding of the fundamentals of economics, commercial law, taxation, finance, and quantitative methods.

A.

I only

B.

II only

C.

I and III only

D.

I, III, and IV only

 

Correct Answer: D

 

 

QUESTION 89

Which of the following represents the most effective governance structure?

 

I.

 

Operating

 

Executive

 

Internal

 

Management

 

Management

 

Auditing

 

Responsibility for risk

 

Oversight role

 

Advisory role

 

II.

 

Oversight role

 

Responsibility for risk

 

Advisory role

 

III.

 

Responsibility for risk

 

Advisory role

 

Oversight role

 

IV.

 

Oversight role

 

Advisory role

 

Responsibility for risk

 

A.

I Only

B.

II

C.

III

D.

IV

 

Correct Answer: A

 

 

QUESTION 90

According to the Standards,the organizational status of the internal audit activity:

 

A.

Must be sufficient to permit the accomplishment of its audit responsibilities.

B.

Is best when the reporting relationship is direct to the board of directors.

C.

Requires the board’s annual approval of the audit schedules,plans,and budgets.

D.

Is guaranteed when the charter specifically defines its independence.

 

Correct Answer: A

 

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