[Free] Download New Updated (October 2016) IIA IIA-CIA-Part2 Real Exam 231-240

Ensurepass

QUESTION 231

An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization’s board iF.

 

I. In the opinion of the CAE, the level of residual risk assumed by senior management is too high.

 

II. Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales.

 

III. The cost of modifying the sales system to include a preventive control is less than $100,000.

 

A.

I only

B.

III only

C.

I and III only

D.

I, II, and III

 

Correct Answer: A

 

 

QUESTION 232

Because of a new marketing initiative, an organization has reduced requirements for extending credit to new customers. As a result, outstanding accounts receivable as a percentage of revenue has increased significantly during the past two years. Which of the following would be least useful in monitoring this finding?

 

A.

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

B.

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

C.

Updates from the controller regarding the status of corrective actions.

D.

Updates from the credit and marketing personnel tasked with reevaluating credit policies.

 

Correct Answer: B

 

 

QUESTION 233

In evaluating the validity of different types of audit evidence, which of the following conclusions is not correct?

 

A.

Recomputation, though highly valid, is limited in usefulness due to its limited scope.

B.

The validity of documentary evidence is independent of the effectiveness of the control system in which it was created.

C.

Internally created documentary evidence is considered less valid than externally created documentary evidence.

D.

The validity of confirmations varies directly with the independence of the party receiving the confirmation.

 

Correct Answer: B

 

 

 

QUESTION 234

The most effective procedure to verify compliance with a requirement that materials be purchased from the lowest-priced source is to compare:

 

A.

Prices paid for selected materials with prices listed on related purchase orders.

B.

Bids obtained for selected purchases with related purchase orders.

C.

Vendors’ current prices with prices listed on related purchase orders.

D.

Approved vendor lists with bids obtained for selected purchases.

 

Correct Answer: B

 

 

QUESTION 235

During an engagement, an internal auditor discovered that an organization’s policy on delegation of authority listed six individuals who were no longer employed with the organization. In addition, four individuals acting with disbursement authority were not identified in the policy as having such authority. Which of the following is the most effective course of action to address the control weakness?

 

A.

Immediately initiate a complete audit of the disbursement function to determine if significant frauds have occurred.

B.

Recommend that management review the process supporting the policy and make improvements.

C.

Advise management to add the four additional names and remove the incorrect names from the policy to make it current.

D.

Review further to ensure that the four individuals do not have the appropriate authority through delegation.

 

Correct Answer: B

 

 

QUESTION 236

Which of the following audit planning activities adds the least value in understanding the current risk exposures facing the corporation?

 

A.

Review of organizational strategic plans and operational plans.

B.

Consultation with senior management and the audit committee.

C.

Review of the external auditor’s risk assessment.

D.

Review of corporate performance reporting and benchmarking.

 

Correct Answer: D

 

 

QUESTION 237

What type of analysis is performed when an auditor tests for unusual variations in information by comparing the number of employees working at a factory site with the direct cost of production each month over a period of one year?

 

A.

Trend analysis.

B.

Ratio analysis.

C.

Regression analysis.

D.

Horizontal analysis.

 

Correct Answer: C

 

 

QUESTION 238

Which of the following tasks would be considered unusual for planning a control self- assessment workshop?

 

A.

Conducting interviews to identify relevant issues for the discussion.

B.

Identifying key stakeholders and ensuring they are represented in the group.

C.

Securing an external subject matter expert to arbitrate disputes.

D.

Ensuring that managers are willing to accept constructive criticism.

 

Correct Answer: C

 

 

QUESTION 239

Which of the following best describes the most important criteria when assigning responsibility for
specific tasks required in an audit engagement?

 

A.

Auditors must be given assignments based primarily upon their years of experience.

B.

All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.

C.

Tasks must be assigned to the audit team member who is most qualified to perform them.

D.

All audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.

 

Correct Answer: B

 

 

QUESTION 240

According to IIA guidance, which of the following are acceptable strategies for an internal audit activity (IAA) to establish or build relationships?

 

A.

Assist executives with their administrative and governance responsibilities, and encourage all IAA members to develop relationships with the organization’s executives.

B.

Assist executives with their administrative and governance responsibilities, and ensure that all communications with the board are formal audit reports or preset agendas.

C.

During an engagement, restrict communications with affected executives to matters pertaining to the engagement; and encourage all IAA members to develop relationships with the organization’s executives.

D.

During an engagement, restrict communications with affected executives to matters pertaining to the engagement; and ensure that all communications with the board are formal audit reports or preset agendas.

 

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.