[Free] Download New Updated (October 2016) IIA IIA-CIA-Part2 Real Exam 11-20

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QUESTION 11

Which of the following trends found on financial reports would most likely indicate a possible problem?

 

A.

A material decrease in the receivables turnover.

B.

A material increase in inventory turnover.

C.

A material increase in daily sales compared to total outstanding receivables.

D.

A material increase in the acid-test ratio.

 

Correct Answer: A

 

 

QUESTION 12

An internal auditor is discussing an audit problem with an engagement client. While listening to the client, the internal auditor should:

 

A.

Prepare a response to the client.

B.

Take mental notes on the speaker’s nonverbal communication, as it is more important than what is being said.

C.

Make sure that all details, as well as the main ideas of the client, are remembered.

D.

Integrate the incoming information from the client with information that is already known.

 

Correct Answer: D

 

 

QUESTION 13

An internal auditor is assigned to conduct an audit of security for a local area network (LAN) in the finance department of the organization. Investment decisions, including the use of hedging strategies and financial derivatives, use data and financial models which run on the LAN. The LAN is also used to download data from the mainframe to assist in decisions. Which of the following should be considered outside the scope of this security au
dit engagement?

 

A.

Investigation of the physical security over access to the components of the LAN.

B.

The ability of the LAN application to identify data items at the field or record level and implement user access security at that level.

C.

Interviews with users to determine their assessment of the level of security in the system and the vulnerability of the system to compromise.

D.

The level of security of other LANs in the company which also utilize sensitive data.

 

Correct Answer: D

 

 

QUESTION 14

Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?

 

I. Company A exhibits a higher standard of ethical behavior than does company B.

 

II. Company A has established objective criteria by which an employee’s actions can be evaluated.

 

III. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.

 

A.

II only

B.

III only

C.

I and II only

D.

II and III only

 

Correct Answer: A

 

 

QUESTION 15

The most common motivation for management fraud is the existence of:

 

A.

Vices, such as a gambling habit.

B.

Job dissatisfaction.

C.

Financial pressures on the organization.

D.

The challenge of committing the perfect crime.

 

Correct Answer: C

 

 

QUESTION 16

Which of the following data collection strategies systematically tests the effects of various factors on an outcome?

 

A.

Content analysis.

B.

Sampling.

C.

Evaluation synthesis.

D.

Modeling.

 

Correct Answer: D

 

 

QUESTION 17

A company’s policy requires that all customers be treated in a fair and consistent manner. Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?

 

A.

Compare the aging of outstanding receivables due from each customer.

B.

Compare credit reports with annual sales for a sample of customers.

C.

Compare the ratio of outstanding receivables to the authorized credit limit for each customer.

D.

Compare the sales discounts offered to each customer.

 

Correct Answer: D

 

 

QUESTION 18

Which of the following might alert an auditor to the possibility of fraud in a division?

 

I. The division is not scheduled for an external audit this year.

 

II. Sales have increased by 10 percent.

 

III. A significant portion of management’s compensation is directly tied to reported net income of the division.

 

A.

I only

B.

III only

C.

I and II only

D.

I, II, and III

 

Correct Answer: B

 

 

QUESTION 19

Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?

 

A.

The number of customer inquiries recorded per day.

B.

The percentage of customer issues resolved within 24 hours.

C.

The number of customer complaints recorded per day.

D.

The percentage of total customers served per day.

 

Correct Answer: B

 

 

QUESTION 20

Monetary-unit sampling is most useful when the internal auditor:

 

A.

Is testing the accounts payable balance.

B.

Cannot cumulatively arrange the population items.

C.

Expects to find several material errors in the sample.

D.

Is concerned with overstatements.

 

Correct Answer: D

 

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