[Free] Download New Updated (October 2016) IIA IIA-CIA-Part2 Real Exam 71-80

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QUESTION 71

Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets?

 

I. Physically inspect all assets on the organization’s property.

 

II. Select a sample department and physically inspect assets in the department.

 

III. Select a sample from the organization’s records of physical assets and physically locate each asset.

 

IV. Identify assets at a sample of locations and trace to the organization’s records.

 

A.

I only

B.

I and IV only

C.

II and III only

D.

III and IV only

 

Correct Answer: D

 

 

QUESTION 72

An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur. The auditor should:

 

A.

Identify the area that has the greatest volume of transactions and design a sampling plan for substantive testing.

B.

Apply analytical procedures to areas that might be impacted by possible fraudulent activities.

C.

Interview employees to identify areas where the fraud could be occurring.

D.

Plan detailed tests of the areas that have the highest dollar amount of transactions.

 

Correct Answer: B

 

 

 

 

QUESTION 73

What does the following scatter gram suggest?

 

A.

Sales revenue is related to training costs.

B.

The training program is not effective.

C.

Increases in training costs consistently increase sales revenue.

D.

One data point is incorrectly plotted.

 

Correct Answer: A

 

 

QUESTION 74

Which of the following would be an appropriate improvement to controls over large quantities of consumable material that are charged to expense when placed in bins which are accessible to production workers?

 

A.

Relocate bins to the inventory warehouse.

B.

Require management to compare the cost of consumable items used to the budget.

C.

Lock the bins during normal working hours.

D.

None of the above actions are needed for items of minor cost and size.

 

Correct Answer: B

 

 

QUESTION 75

The efficiency of internal audit operations is best enhanced if workpaper standards:

 

A.

Permit the extent of documentation to vary according to engagement objectives.

B.

Require supervisors to initial and date each workpaper that they review.

C.

Allow access to workpapers by external parties if approved by senior management or the audit committee.

D.

Mandate the workpaper retention period.

 

Correct Answer: A

 

 

QUESTION 76

Which of the following is used to identify and prioritize critical business applications to determine those that must be restored and the order of restoration in the event that a disaster impairs information systems processing?

 

A.

Contingent facility contract analysis.

B.

System backup analysis.

C.

Vendor supply agreement analysis.

D.

Risk analysis.

 

Correct Answer: D

 

 

 

 

 

 

QUESTION 77

Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?

 

A.

Checks are not restrictively endorsed when received.

B.

Only one signature is required on the organization’s checks.

C.

One employee handles both accounts receivable and purchase orders.

D.

One employee handles both cash deposits and accounts payable.

 

Correct Answer: A

 

 

QUESTION 78

Which of the following would constitute a violation of the IIA Code of Ethics?

 

A.

An internal auditor, who has recently joined the organization, has accepted an assignment to audit the electronics manufacturing division. The auditor previously served as senior auditor for the external audit of that division and has audited many electronics companies during the past two years.

B.

An internal auditor has accepted an assignment to audit the warehousing function six months from now. The auditor has no expertise in that area but has signed up for courses in warehousing that will be completed before the assignment begins.

C.

An internal auditor has no ambitions for promotion and has not engaged in training or other professional development activities during the last three years. The auditor’s performance assessments indicate consistent quality of work.

D.

An internal auditor discovered an internal financial fraud during the year, and the financial statements were adjusted to properly reflect the loss associated with the fraud. The auditor discussed the fraud with the external auditor during the external auditor’s review of the working papers detailing the incident.

 

Correct Answer: C

 

 

QUESTION 79

An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?

 

A.

Interviews provide the opportunity to insert questions to probe promising areas.

B.

Interviews are the most efficient way to upgrade the information to the level of objective evidence.

C.

Interviewing is the least costly audit technique when a large amount of information is involved.

D.

Interviewing is the only audit procedure which does not require confirmation of the information that is obtained.

 

Correct Answer: A

 

 

QUESTION 80

During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?

 

A.

Issue an exception report.

B.

Pay the amount billed and adjust the inventory account for the difference.

C.

Return the invoice to the vendor for correction.

D.

Authorize payment of the full invoice, but maintain an open purchase order record for the missing goods.

 

Correct Answer: A

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