[Free] Download New Updated (October 2016) IIA IIA-CIA-Part2 Real Exam 211-220

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QUESTION 211

In advance of a preliminary survey, a chief audit executive sends a memorandum and questionnaire to the supervisors of the department to be audited. What is the most likely result of that procedure?

 

A.

It creates apprehension about the audit engagement.

B.

It involves the engagement client’s supervisory personnel in the audit.

C.

It is an uneconomical approach to obtaining information.

D.

It is only useful for audits of distant locations.

 

Correct Answer: B

 

 

QUESTION 212

Which of the following is an effective way for an internal auditor to improve communications with the client during a contentious audit?

 

A.

Encourage the client to participate as a partner in the decision-making process to determine the changes that need to be made.

B.

Clearly explain to the client the role of the internal audit activity in the change process.

C.

Obtain the support of the board of directors for proposed changes before discussing the changes with operating management.

D.

Speak privately with key client personnel immediately after proposed changes are announced to address their concerns.

 

Correct Answer: A

 

 

 

QUESTION 213

Persuasive evidence indicates that a member of senior management has been involved in insider trading that would be considered fraudulent. However, the evidence was encountered during an operational audit and is not considered relevant to the audit. Which of the following is the most appropriate action for the chief audit executive to take?

 

A.

Report the evidence to external legal counsel for investigation. Report the legal counsel findings to management.

B.

Report the evidence to the chairperson of the audit committee and recommend an investigation.

C.

Conduct sufficient audit work to conclude whether fraudulent activity has taken place, then report the findings to the chairperson of the audit committee and to government officials if appropriate action is not taken.

D.

Discontinue audit work associated with the insider trading since it is not relevant to the existing audit.

 

Correct Answer: B

 

 

QUESTION 214

With which of the following would the internal audit activity discuss findings, conclusions and recommendations prior to issuance of internal audit report?

 

1. Business unit management.

 

2. Chief audit executive.

 

3. Audit committee.

 

4. Chief executive officer.

 

A.

1 and 2 only

B.

1 and 3 only

C.

2 and 3 only

D.

1, 2, 3, and 4

 

Correct Answer: A

 

 

QUESTION 215

Which of the following is the most common method management can use to manage risk within its risk appetite?

 

A.

Implementation of controls.

B.

Use of risk registers and dashboard.

C.

Frequent communication of risk appetite for operating personnel.

D.

Continuous evaluations and audits.

 

Correct Answer: A

 

 

 

 

 

 

QUESTION 216

Which of the following types of sampling techniques should an internal auditor use when testing the effectiveness of internal controls?

 

A.

Mean-per-unit sampling.

B.

Attributes sampling.

C.

Variables sampling.

D.

Dollar-unit sampling.

 

Correct Answer: B

 

 

QUESTION 217

In a payroll audit, a staff auditor suspects that signatures on some of the documents being sampled for examination are not authentic. What action should the auditor take before proceeding with the examination?

 

A.

Suggest to the payroll manager that the suspicious documents should be sent to the organization’s security department for forensic review.

B.

Keep the suspicious documents in the workpaper file until the end of the engagement, and then discuss the suspicions with the payroll manager.

C.

Discuss the suspicious documents with payroll staff to seek their views on the authenticity of the signatures.

D.

Review the suspicious documents with the chief audit executive and seek advice concerning further examination.

 

Correct Answer: D

 

 

QUESTION 218

A chief audit executive (CAE) has decided to add an engagement to the current audit plan which will exceed available audit resources. Which of the following is the best course of action for the CAE to take?

 

A.

Present the plan change to senior management and request additional resources before going to the board of directors.

B.

Seek approval from senior management and the board of directors for the plan change and advise them of the issue of limited resources.

C.

Add this change to the plan and request senior management to indicate which other engagement should be deleted to keep the overall plan within resource constraints.

D.

Immediately seek additional resources from senior management and the board of directors to meet the needs of the organization.

 

Correct Answer: B

 

 

QUESTION 219

The chief audit executive’s responsibility regarding control processes includes:

 

A.

Assisting senior management and the audit committee in the development of an annual assessment about internal control.

B.

Overseeing the establishment of internal control processes.

C.

Maintaining the organization’s governance processes.

D.

Ensuring that the internal audit activity assesses all control processes annually.

 

Correct Answer: A

 

 

QUESTION 220

To furnish useful and timely information and promote improvements in operations, internal auditors should provide:

 

A.

Senior management with reports that emphasize the operational details of defective conditions.

B.

Operating management with reports that emphasize general concerns and risks.

C.

Information in written form before it is discussed with the engagement client.

D.

Reports that meet the expectations of both operational and senior management.

 

Correct Answer: D

 

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