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Viewing page 4 out of 13 pages

Viewing questions 46-60 out of questions

Questions # 46:

While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?

1. Ensure all tests use a random sampling technique.

2. Consider a judgmental approach for the sample size.

3. Assess testing errors through root cause analysis.

4. Ensure that the entire data set is tested.

Options:

1 and 2.

1 and 3.

2 and 3.

2 and 4.

Questions # 47:

According to the International Professional Practices Framework, which of the following are allowable activities for an internal auditor?

1. Advocating the establishment of a risk management function.

2. Identifying and evaluating significant risk exposures during audit engagements.

3. Developing a risk response for the organization if there is no chief risk officer.

4. Benchmarking risk management activities with other organizations.

5. Documenting risk mitigation strategies and techniques.

Options:

4 and 5 only.

1.2, and 3 only.

1.2. 4. and 5 only.

2. 3. 4. and 5 only.

Questions # 48:

According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?

1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.

2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.

3. The application of technology-based audit and other data analysis techniques, where appropriate.

4. The relative complexity and extent of work needed to achieve the engagement's objectives.

Options:

1, 2, and 3

1, 2, and 4

1, 3, and 4

2, 3, and 4

Questions # 49:

Which of the following are components of the ISO 31000 risk management process?

1. Setting the context.

2. Risk treatment.

3. Risk avoidance.

4. Communication.

Options:

1 and 2 only.

2 and 3.

3 and 4.

1,2, and 4.

Questions # 50:

Which of the following are core responsibilities to be included in the internal audit charter?

1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.

2. Determine the adequacy and effectiveness of the organization’s systems of internal accounting and operating controls.

3. Participate in the planning and performance of audits of potential acquisitions with the organization's outside accountants and other members of the corporate staff.

4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.

Options:

1 and 2.

1 and 4.

2 and 3.

2 and 4.

Questions # 51:

According to IIA guidance, which of the following statements is true regarding periodic internal assessments of the internal audit activity?

Options:

Internal assessments are conducted to benchmark the internal audit activity's performance against industry best practices.

Internal assessments must be performed at least once every five years by a qualified assessor.

An internal auditor may perform a peer review of a colleague's workpapers, as long as the auditor wasn't involved in the audit under review.

Follow-up to ensure appropriate improvements are implemented is a recommended, but not mandatory, element of internal assessments.

Questions # 52:

Which of the following professional development approaches would offer internal auditors the most opportunities to broaden their engagement experiences?

Options:

Assign more experienced internal auditors to mentor the less experienced auditors.

Send internal auditors to external trainings in advanced internal audit topics.

Appraise internal auditors' performance and competencies at least annually and issue constructive feedback.

Rotate internal auditors among different engagement assignments.

Questions # 53:

Which two of the following are preventive controls in a check disbursement process?

1. Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-reconciled items.

2. Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.

3. An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.

4. Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.

Options:

1 and 3.

1 and 4.

2 and 3.

2 and 4.

Questions # 54:

Which of the following items should the chief audit executive disclose to senior management regarding the results of the internal audit activity's quality assessments?

Options:

The internal audit activity's plan for resource allocation.

The amount of the organization's potential loss prevented by the risk-based auditing of the internal audit activity.

The number of audits from the annual internal audit plan that were completed last year.

The qualifications and independence of the assessment Team.

Questions # 55:

Which of the following documents is most appropriate in promoting the objectivity of the internal audit activity?

Options:

Usage of IT system policy.

Risk management framework.

Acceptance of gifts policy.

Personal responsibility policy.

Questions # 56:

According to IIA guidance, which of the following should be included in the internal audit charter?

Options:

The minimum resources and competencies needed for the internal audit activity.

Identification of the organizational units where engagements are to be performed.

Organizational relationships and reporting lines.

Assigned responsibilities for designing and implementing controls.

Questions # 57:

Which of the following control activities is the most effective to ensure users' levels of access are appropriate for their current roles?

Options:

The human resources department generates a monthly list of terminated and transferred employees and requests IT to update the user access as required.

Standardized user access profiles are developed and the appropriate access profiles are automatically assigned to new or transferred employees.

System administrator rights are assigned to one user in each department who can update user access of terminated or transferred employees immediately.

Department managers are required to perform periodic user access reviews of relevant systems and applications.

Questions # 58:

Which segregation of duties would best reduce the risk of payroll fraud?

Options:

Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.

Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.

Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.

Human resources personnel add employees and enter employee bank information. Payroll personnel process hours, and paychecks are automatically deposited in the employee's bank account.

Questions # 59:

Which of the following statements describes impairment to the internal auditor's objectivity?

Options:

An internal auditor reviews a purchasing agent's contract drafts prior to their execution.

An internal auditor reduces the scope of an audit engagement due to budget restrictions.

An internal auditor receives a promotional gift that is available to the organization's employees.

An internal auditor performs an assessment of the operations for which he was recently responsible.

Questions # 60:

An internal auditor in a small broadcasting organization was assigned to review the revenue collection process. The auditor discovered that some checks from three customers were never recorded in the organization's financial records. Which of the following documents would be the least useful for the auditor to verify the finding?