[Free] Download New Updated (October 2016) IIA IIA-CIA-Part2 Real Exam 81-90

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QUESTION 81

If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?

 

A.

Attributes sampling.

B.

Discovery sampling.

C.

Targeted sampling.

D.

Variables sampling.

 

Correct Answer: B

 

 

QUESTION 82

A company has recently incurred significant cost overruns on o
ne of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion?

 

I. Verify that the contractor has not charged change orders with costs that have already been billed to the original contract.

 

II. Determine if the contractor has billed for original contract work that was canceled as a result of change orders.

 

III. Verify that the change orders were properly approved by management.

 

A.

I only

B.

III only

C.

I and II only

D.

I and III only

 

Correct Answer: C

 

 

QUESTION 83

When conducting research, which of the following is most important?

 

A.

Using computer databases or the Internet to find all relevant sources.

B.

Providing documentation of the reference sources.

C.

Presenting only those facts that support the conclusion.

D.

Presenting all contrary views to balance the opinion.

 

Correct Answer: B

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QUESTION 84

The following is an excerpt from an audit engagement workpaper:

 

clip_image002A Company

clip_image002[1]Accounts Receivable

clip_image002[2]Date

 

Objective. To determine if the computer system is correctly recording all accounts receivable transactions.

 

Procedures: Judgmental selection of a sample of all accounts receivable balances greater than $50,000 for positive confirmation of balances.

 

Conclusion: Based on the results of testing wherein all but three confirmations were returned, the accounts receivable balance is fairly presented in all material respects.

 

Which of the following is true regarding the workpaper?

 

A.

It is not appropriate to judgmentally select a sample when testing accounts receivable.

B.

A conclusion should be reached only for the results of overall testing, not for individual procedures.

C.

The audit procedures used are not consistent with the audit objective.

D.

The format of the workpaper does not conform to the standard format for workpapers.

 

Correct Answer: C

 

 

QUESTION 85

In forming a team to investigate an organization’s potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor’s knowledge of:

 

A.

Activities and cost drivers.

B.

Information processing procedures.

C.

Current product cost structures.

D.

Internal control alternatives.

 

Correct Answer: D

 

 

QUESTION 86

Which of the following audit techniques provides for continuous monitoring and analysis of computer transactions for detailed auditing?

 

A.

Integrated test facility.

B.

Parallel simul-ation.

C.

Test data.

D.

Embedded audit routines.

 

Correct Answer: D

 

 

 

QUESTION 87

An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau. What action should the auditor take, considering the outsourcing decision?

 

A.

Review the controls over payroll in both the company and the service bureau.

B.

Review only the company’s controls over data sent to and received from the service bureau.

C.

Review only the controls over payments to the service bureau based on the contract.

D.

Cancel the engagement because the processing is being performed outside of the organization.

 

Correct Answer: A

 

 

QUESTION 88

A film company determined that income level impacts the number of films that people watch per month, as shown by the graph below:

 

The graph indicates that:

 

A.

A richer person always sees more films than a poorer person.

B.

The number of films seen per month is a linear function of income level.

C.

A 20 percent pay increase is more likely to increase film viewing at lower income levels than at higher income levels.

D.

A 20 percent pay increase is likely to increase film viewing by a constant amount regardless of income level.

 

Correct Answer: C

 

 

QUESTION 89

The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:

 

A.

Determining if controls over record keeping and reporting are adequate and effective.

B.

Reviewing data provided by information systems to test compliance with external requirements.

C.

Determining if information systems provide management with timely information.

D.

Determining if information systems provide complete information.

 

Correct Answer: A

 

 

QUESTION 90

Which of the following conditions is the strongest indicator of possible fraud?

 

A.

An assistant treasurer who refuses to take vacations.

B.

Independent reconciliations of subsidiary to general ledgers that are not always completed on a timely basis.

C.

A condition of excess manufacturing waste material.

D.

A manager who is often over budget at the end of a reporting period.

 

Correct Answer: A

 

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