[Free] Download New Updated (October 2016) IIA IIA-CIA-Part2 Real Exam 181-190

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QUESTION 181

As a result of a recent discovery of false information on employment applications, an internal auditor has reviewed hiring procedures. Which of the following represents a weakness in the control system?

 

I. Applicants are not required to have their signed applications legally authenticated.

 

II. Applicants’ educational information is not validated with the educational institution before employment is offered.

 

III. Information related to applicants’ long-term work history is not validated before employment is offered.

 

A.

III only

B.

I and II only

C.

II and III only

D.

I, II, and III

 

Correct Answer: C

 

 

QUESTION 182

During a systems development audit, software developers indicated that all programs were moved from the development environment to the production environment and then tested in the production environment. What should the auditor recommend?

 

I. Implement a test environment to ensure that testing is not performed in the production environment.

 

II. Require developers to move modified programs from the development environment to the test environment and from the test environment to the production environment.

 

III. Eliminate access by developers to the production environment.

 

A.

I only

B.

III only

C.

I and II only

D.

I and III only

 

Correct Answer: D

 

 

QUESTION 183

During a review of performance measures in an organization’s purchasing function, the preliminary survey indicates that most of the measures have been in use for some time. The internal auditor should:

 

A.

Review the data that was used to develop the measures.

B.

Perform benchmarking in order to verify that the measures being used are meaningful.

C.

Establish the history of the measures and re
asons for use.

D.

Report that the measures being used are out-of-date and should be improved.

 

Correct Answer: B

 

 

QUESTION 184

A performance audit engagement typically involves:

 

A.

Review of financial statement information, including the appropriateness of various accounting treatments.

B.

Tests of compliance with policies, procedures, laws, and regulations.

C.

Appraisal of the environment and comparison against established criteria.

D.

Evaluation of organizational and departmental structures, including assessments of process flows.

 

Correct Answer: C

 

 

 

 

 

 

QUESTION 185

An audit of customer accounts receivable found that outstanding receivables as a percentage of revenue had increased significantly during the past two years. The increase was attributed to the extension of credit, at the urging of the marketing department, to a number of companies that were not creditworthy. Which of the following would be least useful in monitoring the disposition of this finding?

 

A.

Responses from the manager of accounts receivable regarding collection of outstanding receivables.

B.

Periodic updates from the controller regarding the status of corrective actions.

C.

Information from the credit and marketing personnel assigned the responsibility for reevaluating credit policies.

D.

Updates from the information technology division regarding implementation of a new accounts receivable system.

 

Correct Answer: D

 

 

QUESTION 186

Which of the following is a responsibility of the internal auditor once a fraud investigation has been concluded?

 

A.

Ascertain the extent to which fraud has been perpetrated.

B.

Notify the appropriate regulatory authorities regarding the outcome of the investigation.

C.

Determine if controls need to be implemented or strengthened to reduce future vulnerability.

D.

Implement controls to prevent future occurrences.

 

Correct Answer: C

 

 

QUESTION 187

An audit of a company’s accounts payable found that the individuals responsible for maintaining the vendor master file could also enter vendor invoices into the accounts payable system. During the exit conference, management agreed to correct this problem. When performing a follow-up engagement of accounts payable, the auditor should expect to find that management has:

 

A.

Transferred the individuals who maintained the vendor master file to another department to ensure that responsibilities are appropriately segregated.

B.

Compared the vendor and employee master files to determine if any unauthorized vendors have been added to the vendor master file.

C.

Changed the access control system to prevent employees from both entering invoices
and approving payments.

D.

Modified the accounts payable system to prevent individuals who maintain the vendor master file from entering invoices.

 

Correct Answer: D

 

 

QUESTION 188

An auditor is performing a review of a complex process to identify opportunities to increase efficiency. What is the most practical way to document the process to identify areas of inefficiency?

 

A.

Write a description of the process activities in sequential order.

B.

Develop a PERT (program evaluation and review technique) diagram.

C.

Flowchart the process.

D.

Create a decision tree.

 

Correct Answer: C

 

 

QUESTION 189

An internal auditor is conducting tests to determine if an organization is in compliance with its payment approval policies. After reviewing a sample of vouchers selected, the internal auditor concluded that there were indicators of fraud. Which of the following would be the most appropriate method to expand the audit test to achieve the audit objective?

 

I. Validate the completeness of the accounts payable files.

 

II. Examine the sample of vouchers in greater detail.

 

III. Increase the number of vouchers in the sample.

 

IV. Broaden the scope of the examination to include credits received by accounts payable.

 

A.

I and II only

B.

II and III only

C.

I, II, and IV only

D.

I, III, and IV only

 

Correct Answer: B

 

 

QUESTION 190

A retail sales company has discontinued a product that normally sold for $100. During the first month of a sale of the product, a 20 percent discount was given. Later that sale price was reduced by an additional 40 percent. What was the overall discount from the original selling price?

 

A.

60 percent.

B.

52 percent.

C.

48 percent.

D.

30 percent.

 

Correct Answer: B

 

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