IIA-CIA-Part2 Practice Questions

A.  

To identify whether fuel was purchased for work-related purposes

B.  

To estimate future fuel costs for the organization's fleet of vehicles

C.  

To determine trends in average fuel consumption by vehicle

D.  

To determine whether the organization is paying more than the industry average for fuel

A.  

The engagement team should include internal auditors who have expertise in investigating vendor fraud

B.  

The engagement team should be composed of certified accountants who are proficient In financial statement analysis and local accounting principles

C.  

To preserve independence and objectivity, an auditor who worked for the vendor two years prior may not participate on the engagement team

D.  

The engagement team may include an auditor who lacks knowledge of the industry in which the vendor operates

A.  

Develop a comparison of the costs incurred with similar costs incurred by other organizations

B.  

Obtain the government index of health-care costs for the comparable period of time and compare the rate of increase with that of the cost per employee incurred by the organization.

C.  

Obtain a bid from another health-care administrator to provide the same administrative services as the current health-care administrator.

D.  

Review all claims and compare with appropriate procedures to ensure that overpayments have not occurred

A.  

Review logs of the vehicles assigned to employees for the delivery of goods during the engagement period.

B.  

Visit the home address of the specific employee to see the selected vehicle.

C.  

Compare the registered details of the vehicle in the fixed asset register to a date-stamped photograph of the vehicle.

D.  

Seek independent confirmation of the vehicle's details from one of the delivery employees.

A.  

The assessment of high-level risks is typically a linear process.

B.  

Management should create the preliminary risk matrix

C.  

The analysis should begin with ne identification of objectives

D.  

Likelihood should receive greater consideration than impact

A.  

CSA allows management to have input into the audit plan.

B.  

CSA allows process owners to identify, evaluate, and recommend improving control deficiencies.

C.  

CSA can improve the control environment.

D.  

CSA increases control consciousness.

A.  

Recent workpapers can help during the planning of a new engagement to understand any corrective actions taken by management to address previous engagement observations.

B.  

Tests described in recent workpapers can be copied into the new workpapers to save time from reperforming a risk assessment.

C.  

Recent workpapers serve as the best source for identification of the risks to be examined in the new engagement.

D.  

The new engagement scope can be derived from recent workpapers to ensure the reperformance of engagement procedures.

A.  

Issue an internal control questionnaire to select branch customers.

B.  

Issue an internal control questionnaire to the president of the organization.

C.  

Issue an internal control questionnaire to the director of bank operations.

D.  

Issue an internal control questionnaire to select branch managers.

A.  

Enable training and development of staff, identify engagement objectives, and assign responsibilities to individual auditors.

B.  

Identify engagement objectives, assign responsibilities to individual auditors, and approve the engagement program.

C.  

Assign responsibilities to individual auditors, approve the engagement program, and enable training and development of staff.

D.  

Approve the engagement program, enable training and development of staff, and identify engagement objectives

A.  

Acts that may endanger the health or safety of individuals.

B.  

Acts that favor one party to the detriment of another.

C.  

Acts that damage or have an adverse effect on the environment.

D.  

Acts that conceal inappropriate activities in the organization.

A.  

Report follow-up activities to senior management.

B.  

Implement follow-up procedures to evaluate residual risk.

C.  

Determine the costs of implementing the recommendations.

D.  

Evaluate the extent of improvements.

A.  

Sampling risk.

B.  

Audit risk.

C.  

Residual risk.

D.  

Inherent risk

A.  

The organization is exposed to significant fraud and abuse risks as a result of the vendor and employee business relationships.

B.  

Due to improper relationships and favoritism, vendors are not providing goods or services at a reasonable price to meet the objectives.

C.  

The organization’s conflict-of-interest policies are not clear or well communicated throughout the organization.

D.  

Improper relationships and favoritism means that controls are not effective and significant fraud occurs.

A.  

Visiting the grantee to assess whether the execution of the project was in line with the defined grant scope.

B.  

Verifying that the grantee's final report is in line with what was depicted in the initial budget request.

C.  

Reconciling general ledger accounts used by management of the area under review for reflecting expenses on charitable contributions

D.  

Interviewing employees of the corporate affairs department, which is responsible for charitable activities

A.  

Compare purchase orders generated from test data Input into the LAN with purchase orders generated from production data for the most recent period.

B.  

Develop a report of excess inventory and compare the inventory with current production volume.

C.  

Compare the parts needed based on current production estimates and the MRP for the revised production techniques with the purchase orders generated from the system for the same period

D.  

Select a sample of production estimates and MRPs for several periods and trace them into the system to determine that input is accurate