[Free] Download New Updated (October 2016) IIA IIA-CIA-Part2 Real Exam 311-320

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QUESTION 311

The internal audit activity of an investment company received a request to provide assurance on the risk management process. Preliminary discussion with senior management revealed that separate functions within the organization perform some form of risk management activities. Which of the following is the most effective tool for ensuring that risk management activities are coordinated among these functions?

 

A.

Delphi technique.

B.

Assurance map.

C.

Facilitated workshop.

D.

Analytical reviews.

 

Correct Answer: B

 

QUESTION 312

An internal auditor for a large telecommunications organization identified potential risk factors related to a planned
billing system conversion. Which of the following risk factors would present the least potential exposure to the organization?

 

A.

Critical customer support functions are not available for a short period.

B.

Invoice generation disruptions due to required maintenance.

C.

Inaccurate billing of telephone calls due to database error.

D.

End user criticism and lack of support for the new system.

 

Correct Answer: B

 

 

QUESTION 313

According to the Standards, which of the following is applicable to the internal audit activity’s quality assurance and improvement program?

 

A.

Periodic monitoring of the internal audit activity should be done.

B.

All aspects of the internal audit activity should be evaluated.

C.

An external assessment should be obtained every three years.

D.

The review of assurance services should be the primary focus.

 

Correct Answer: B

 

 

QUESTION 314

The following audit observation was included in the final audit report:

 

“Our review concluded that bank reconciliation statements for March and April did not show evidence of supervisory review. We recommend strict compliance with the controller’s manual, which requires the department head to place their initials on the reconciliation statements to document their review.”

 

Which of the following attributes are missing from the above audit observation?

 

1. Criteria.

 

2. Condition.

 

3. Cause.

 

4. Effect.

 

A.

1 and 4 only

B.

2 and 3 only

C.

1, 3, and 4 only

D.

3 and 4 only

 

Correct Answer: D

 

 

 

 

 

QUESTION 315

According to the Standards, which of the following best describes the responsibility of the chief audit executive (CAE) for approving the final engagement report?

 

1. The CAE is responsible for obtaining management approval before issuing the final report.

 

2. The CAE has overall responsibility for the report but can delegate the review and approval of the report.

 

3. The CAE is responsible for obtaining senior management’s approval before releasing the final report.

 

4. The CAE is responsible for approving to whom and how the final report will be disseminated.

 

A.

1 and 3 only

B.

1 and 4 only

C.

2 and 3 only

D.

2 and 4 only

 

Correct Answer: D

 

 

QUESTION 316

Which of the following is an advantage to using the questionnaire approach when conducting risk and control self assessments?

 

A.

Responses can easily be quantified and analyzed.

B.

Follow-up for clarification is efficient.

C.

It is educational for participants.

D.

It allows for in-depth probing of issues.

 

Correct Answer: A

 

 

QUESTION 317

An audit engagement objective at a manufacturer is to determine the quality of raw materials purchased. Which of the following actions would best enable an internal auditor to satisfy this objective?

 

A.

Analyze the provision for sales allowances.

B.

Analyze the percentage of scrap incurred during production.

C.

Research the rationale for customer returns.

D.

Evaluate the volume and characteristics of products rejected during processing.

 

Correct Answer: D

 

 

QUESTION 318

Which of the following are key characteristics of enterprise risk management?

 

1. It considers risk in the formulation of strategy.

 

2. It applies risk management in some units of an entity.

 

3. It takes a portfolio view of risks throughout the enterprise.

 

4. It restricts the organization’s ability to seize opportunities inherent in future events.

 

A.

2 and 3 only

B.

1 and 3 only

C.

2 and 4 only

D.

1 and 4 only

 

Correct Answer: B

 

 

QUESTION 319

When determining if appropriate resources exist to achieve engagement objectives, which of the following factors should a chief audit executive consider?

 

1. Nature and complexity of the audit engagement.

 

2. Time constraints.

 

3. Effectiveness of the audit committee.

 

4. Availability of resources for the engagement.

 

A.

1 and 2 only

B.

1, 2, and 3 only

C.

1, 2, and 4 only

D.

1, 3, and 4 only

 

Correct Answer: C

 

 

QUESTION 320

The chief audit executive of a large publicly held bank is using a risk based approach to update the annual audit plan. Which of the following sources of information will have the least impact on the plan?

 

A.

The 12 month forecast of commercial property values.

B.

Recent changes to the bank’s strategic plan.

C.

Regulatory changes impacting capitalization for all publicly traded banks.

D.

Continuous changes in the prime lending rate set by the country’s central bank.

 

Correct Answer: D

 

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