[Free] Download New Updated (October 2016) IIA IIA-CIA-Part2 Real Exam 271-280

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QUESTION 271

Cross-referencing individual payroll time cards to personnel department records and reports would allow an internal auditor to determine whether:

 

A.

Individuals are bona fide employees.

B.

Personnel department records agree with payroll accounting records.

C.

Individuals were paid at the proper rates.

D.

Individuals were paid only for time worked.

 

Correct Answer: A

 

QUESTION 272

Which of the following statements is correct regarding the assessment of risk in the annual audit planning process?

 

1. Activities requested by management should be considered higher risk than those requested by the audit committee.

 

2. Activities with lower budgets can be as high risk as those with higher budgets.

 

3. The potential financial or adverse exposure should always be considered in the assessment of risk.

 

A.

1 only

B.

2 only

C.

3 only

D.

2 and 3 only

 

Correct Answer: D

 

 

QUESTION 273

Given the scarcity of internal audit resources, a chief audit executive (CAE) decides not to schedule a follow-up of audit recommendations when developing engagement work schedules. Why does the CAE’s decision violate the Standards?

 

A.

It is not the CAE’s responsibility to establish a process for a follow-up.

B.

Lack of resources is not a sufficient reason to forgo a follow-up.

C.

Follow-up actions should take priority over new engagements in scheduling.

D.

When resources are scarce, the follow-up can be incorporated into the next engagement.

 

Correct Answer: B

 

 

QUESTION 274

When interviewing an individual in relation to a fraud investigation, which course of action should the internal auditor follow?

 

A.

Assure the individual that the results of the interview will remain confidential.

B.

Establish a rapport with the subject to encourage openness.

C.

Discontinue questioning once the individual has confessed to the fraud.

D.

Refrain from deviating from the list of questions prepared before the interview.

 

Correct Answer: B

 

 

QUESTION 275

Confirmation would be most effective in addressing the existence assertion for:

 

A.

The addition of a milling machine to a machine shop.

B.

Sales of merchandise during the regular course of business.

C.

Inventory held on consignment.

D.

The granting of a patent for a special process developed by the organization.

 

Correct Answer: C

 

 

QUESTION 276

Which of the following would have the least impact (either positive or negative) on an assessment of a department’s control environment?

 

A.

The department managed long-term investments, including investment in derivatives and other financial instruments, to maximize return.

B.

The department manager sets a tone of honesty and integrity in all business dealings and this tone is emulated by department personnel.

C.

Many department functions were duplicated or verified by other department employees as part of the department’s normal procedures.

D.

Audit tests designed to verify compliance with control procedures detected a general failure to follow standard procedures for transaction authorization.

 

Correct Answer: A

 

 

QUESTION 277

Which of the following actions is related to the preliminary survey process?

 

A.

Determining if controls are effective.

B.

Preparing the engagement work program.

C.

Identifying the current controls.

D.

Completing a detailed test of controls.

 

Correct Answer: C

 

 

QUESTION 278

A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive but performs no further follow-up. The auditor’s actions would.

 

I. Be in violation of the IIA Code of Ethics for withholding meaningful information.

 

II. Be in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.

 

III. Not be in violation of either the IIA Code of Ethics or Standards.

 

A.

I only

B.

II only

C.

III only

D.

I and II only

 

Correct Answer: C

 

 

 

 

QUESTION 279

Which of the following actions has the least influence on the chief audit executive’s development of an audit plan?

 

A.

Input from senior management and the board.

B.

An evaluation of the complexity of each audit engagement.

C.

Changes in the organizations structure or budget.

D.

An assessment of risk and exposures affecting the organization.

 

Correct Answer: B

 

 

QUESTION 280

An auditor-in-charge is preparing her audit team for a consulting engagement at one of the organization’s foreign subsidiaries. According to the Standards, which of the following would not be a necessary step prior to beginning the engagement?

 

A.

Verify that none of the audit team worked for the foreign subsidiary within the last year to ensure independence.

B.

Agree, in writing, with the subsidiary’s senior management regarding the scope of the engagement.

C.

Communicate a time frame as well as a contingency plan in the event the engagement may take longer than expected.

D.

Communicate what logistical support will be provided by the subsidiary for the duration of the engagement.

 

Correct Answer: A

 

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