[Free] Download New Updated (October 2016) IIA IIA-CIA-Part2 Real Exam 1-10

Ensurepass

QUESTION 1

A governmental auditor was assigned to determine reasons why the students in one region scored significantly higher on education evaluation tests than did the students in another region. Previous research showed that there is a direct correlation between public financial support and student results. Which of the following is most likely to explain the difference in the regional results?

 

A.

The more successful region spends 30 percent more money on education than does the other region.

B.

A higher percentage of the general tax fund is spent on education in the more successful region than in the other region.

C.

The more successful region spends more money per student on education than does the other region.

D.

The more successful region has increased educational spending by an average of 10 percent each year for the last three years, whereas the other region’s increase averaged only three percent.

 

Correct Answer: C

 

 

QUESTION 2

An audit of management’s quality program includes testing the accuracy of the cost-of- quality reports provided to management. Which of the following internal control objectives is the focus of this testing?

 

A.

To ensure compliance with policies, plans, procedures, laws, and regulations.

B.

To ensure the accomplishment of established objectives and goals for operations or programs.

C.

To ensure the reliability and integrity of information.

D.

To ensure the economical and efficient use of resources.

 

Correct Answer: C

 

 

QUESTION 3

Which of the following processes real-transaction data through auditor-developed test programs?

 

A.

Generalized audit software.

B.

Tracing.

C.

Parallel simul-ation.

D.

Mapping.

 

Correct Answer: C

 

 

QUESTION 4

During an audit of a retail organization, an internal auditor found a scheme in which the warehouse director and the purchasing agent diverted approximately $500,000 of goods to their own warehouse, then sold the goods to third parties. The fraud was not found earlier since the warehouse director updated the perpetual inventory records and then forwarded receiving reports to the accounts payable department for processing. Which of the following procedures would have most likely led to the discovery of the missing materials and the fraud?

 

A.

Select a random sample of receiving reports and trace to the recording in the perpetual inventory records. Note differences and investigate by type of product.

B.

Select a random sample of purchase orders and trace to receiving reports and to the records in the accounts payable department.

C.

Take an annual physical inventory, reconciling amounts with the perpetual inventory records. Note the pattern of differences and investigate.

D.

Select a random sample of sales invoices and trace to the perpetual inventory records to see if inventory was on hand. Investigate any differences.

 

Correct Answer: C

 

 

QUESTION 5

An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation. The primary deficiency with the above process is that:

 

A.

The auditor failed to consider the importance of the information offered.

B.

A questionnaire was used in a situation where a structured interview should have been used.

C.

Using a questionnaire precludes the auditor from documenting other information.

D.

The engagement program was incomplete.

 

Correct Answer: A

 

 

QUESTION 6

Which of the following will be an appropriate course of action when an auditor disagrees with a client about a well-documented audit finding?

 

A.

Include both the audit finding and the client’s position in the audit report.

B.

Defer reporting the item and plan to perform more detailed work during the next audit.

C.

Change the finding so that it is acceptable to the client.

D.

Address the issue with senior management and the board for resolution prior to issuing the final report.

 

Correct Answer: A

 

 

QUESTION 7

New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management’s data and information provide.

 

A.

Feedback control data.

B.

Irrelevant and argumentative information.

C.

Evidence that the new credit policies do not meet the stated corporate objective to improve collections.

D.

A statistically valid conclusion about the impact of the new credit policies on customer goodwill.

 

Correct Answer: A

 

 

 

QUESTION 8

Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?

 

A.

Observe the process.

B.

Review the trend in receivables write-offs.

C.

Ask the credit manager about the effectiveness of the function.

D.

Check for evidence of credit approval on a sample of customer orders.

 

Correct Answer: B

 

 

QUESTION 9

An internal auditor would most likely use attributes sampling when testing which of the following?

 

A.

Accounts receivable balances.

B.

Correct coding of accounts payable disbursement vouchers.

C.

Year-end inventory value.

D.

Fixed asset book value.

 

Correct Answer: B

 

 

QUESTION 10

In a sampling application, the group of items about which the auditor wants to estimate some characteristic is called the.

 

A.

Population.

B.

Attribute of interest.

C.

Sample.

D.

Sampling unit.

 

Correct Answer: A

 

Free VCE & PDF File for IIA IIA-CIA-Part2 Real Exam

Instant Access to Free VCE Files: CompTIA | VMware | SAP …
Instant Access to Free PDF Files: CompTIA | VMware | SAP …

This entry was posted in IIA-CIA-Part2 Actual Test (October 2016) and tagged , , , , , , , . Bookmark the permalink.