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Pass the IIA CIA Challenge Exam IIA-ACCA Questions and answers with ExamsMirror

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Viewing questions 61-75 out of questions

Questions # 61:

During an audit, the client questions the internal audit activity's authority to perform procedures over fraud allegations. According to HA guidance, which of the following would provide the most relevant support to respond to the client's concerns?

Options:

Definition of Internal Auditing.

MA Standards.

Internal audit charter.

The IIA's Code of Ethics.

Questions # 62:

According to IIA guidance, which of the following factors should the auditor in charge consider when determining the resource requirements for an audit engagement?

Options:

The number, experience, and availability of audit staff as well as the nature, complexity, and time constraints of the engagement.

The appropriateness and sufficiency of resources and the ability to coordinate with external auditors.

The number, proficiency, experience, and availability of audit staff as well as the ability to coordinate with external auditors.

The appropriateness and sufficiency of resources as well as the nature, complexity, and time constraints of the engagement.

Questions # 63:

A large investment organization hired a chief risk officer (CRO) to be responsible for the organization's risk management processes. Which of the following people should prioritize risks to be used for the audit plan?

Options:

Operational management, because they are responsible for the day-to-day management of the operational risks.

The CRO, because he is responsible for coordinating and project managing risk activities based on his specialized skills and knowledge.

The chief audit executive, although he is not accountable for risk management in the organization.

The CEO, because he has ultimate responsibility for ensuring that risks are managed within the agreed tolerance limits set by the board.

Questions # 64:

After the team member who specialized in fraud investigations left the internal audit team, the chief audit executive decided to outsource fraud investigations to a third party service provider on an as needed basis. Which of the following is most likely to be a disadvantage of this outsourcing decision?

Options:

Cost.

Independence.

Familiarity.

Flexibility.

Questions # 65:

An internal auditor wants to determine whether employees are complying with the information security policy, which prohibits leaving sensitive information on employee desks overnight. The auditor checked a sample of 90 desks and found eight that contained sensitive information. How should this observation be reported, if the organization tolerates 4 percent noncompliance?

Options:

The matter does not need to be reported, because the noncompliant findings fall within the acceptable tolerance limit.

The deviations are within the acceptable tolerance limit, so the matter only needs to be reported to the information security manager.

The incidents of noncompliance fall outside the acceptable tolerance limit and require immediate corrective action, as opposed to reporting.

The incidents of noncompliance exceed the tolerance level and should be included in the final engagement report.

Questions # 66:

According to IIA guidance, organizations have the most influence on which element of fraud?

Options:

Opportunity.

Rationalization.

Pressure.

Incentives.

Questions # 67:

According to IIA guidance, which of the following statements is false regarding a review of the controls in place to prevent fraud?

Options:

The review should focus on the efficiency of the controls in place to prevent fraud.

The scope of the review does not need to include all operating areas of the organization.

The cost of the control should be compared to the benefit of mitigating the related risk.

The review should assess whether the internal controls can be circumvented.

Questions # 68:

A manufacturer is under contract to produce and deliver a number of aircraft to a major airline. As part of the contract, the manufacturer is also providing training to the airline's pilots. At the time of the audit, the delivery of the aircraft had fallen substantially behind schedule while the training had already been completed. If half of the aircraft under contract have been delivered, which of the following should the internal auditor expect to be accounted for in the general ledger?

Options:

Training costs allocated to the number of aircraft delivered, and the cost of actual production hours completed to date.

All completed training costs, and the cost of actual production hours completed to date.

Training costs allocated to the number of aircraft delivered, and 50% of contracted production costs.

All completed training costs, and 50% of the contracted production costs.

Questions # 69:

According to IIA guidance, which of the following is least likely to be a key financial control in an organization's accounts payable process?

Options:

Require the approval of additions and changes to the vendor master listing, where the inherent risk of false vendors is high.

Monitor amounts paid each period and compare them to the budget to identify potential issues.

Compare employee addresses to vendor addresses to identify potential employee fraud.

Monitor customer quality complaints compared to the prior period to identify vendor issues.

Questions # 70:

Which of the following statements is true pertaining to interviewing a fraud suspect?

1. Information gathered can be subjective as well as objective to be useful.

2. The primary objective is to obtain a voluntary written confession.

3. The interviewer is likely to begin the interview with open-ended questions.

4. Video recordings always should be used to provide the highest quality evidence.

Options:

1 only

4 only

1 and 3

2 and 4

Questions # 71:

Which of the following statements describes an engagement planning best practice?

Options:

It is best to determine planning activities on a case-by-case basis because they can vary widely from engagement to engagement.

If the engagement subject matter is not unique, it is not necessary to outline specific testing procedures during the planning phase.

The engagement plan includes the expected distribution of the audit results, which should be kept confidential until the audit report is final.

Engagement planning activities include setting engagement objectives that align with audit client's business objectives.

Questions # 72:

An internal auditor notes that employees continue to violate segregation-of-duty controls in several areas of the finance department, despite previous audit recommendations. Which of the following recommendations is the most appropriate to address this concern?

Options:

Recommend additional segregation-of-duty reviews.

Recommend appropriate awareness training for all finance department staff.

Recommend rotating finance staff in this area.

Recommend that management address these concerns immediately.

Questions # 73:

Due to a recent system upgrade, an audit is planned to test the payroll process. Which of the following audit objectives would be most important to prevent fraud?

Options:

Verify that amounts are correct.

Verify that payments are on time.

Verify that recipients are valid employees.

Verify that benefits deductions are accurate.

Questions # 74:

A newly promoted chief audit executive (CAE) is faced with a backlog of assurance engagement reports to review for approval. In an attempt to attach a priority for this review, the CAE scans the opinion statement on each report. According to IIA guidance, which of the following opinions would receive the lowest review priority?

1. Graded positive opinion.

2. Negative assurance opinion.

3. Limited assurance opinion.

4. Third-party opinion.