Question 1

An internal auditor has suspicions that the management of a department splits me number of planned purchases to avoid the approval process required for larger purchases. Which of the following would be the most efficient technique to help the auditor identify the seventy of this malpractice?

Options :

A : Examining the entire population

B : Asking management about the malpractice

C : Testing a sample of random transactions.

D : Using data analytics

Answer: D

Question 2

An examination of the accounts payable function evidenced multiple findings with respect to segregation of duties. After management's response and action plan are received and documented in the final report, which of the following is most appropriate?

Options :

A : Follow up after the applicable changes have been incorporated to validate management’s response.

B : Include the items in the scope of the next scheduled audit of the accounts payable function.

C : Because management agreed with the findings, no further action is deemed necessary.

D : Have an internal audit staff member placed into the accounting department until corrections are made.

Answer: A

Question 3

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 :

A : 1 only

B : 4 only

C : 1 and 3

D : 2 and 4

Answer: C

Question 4

Following an audit, management developed an action plan to improve controls over the handling of scrap metal. Which of the following would be the most appropriate course of action for the auditor to follow up?

Options :

A :

Conduct another audit engagement to ensure all risks related to the sales of scrap metal have been mitigated.

B : Ensure new procedures have been documented, approved, and distributed to the employees responsible.

C :

Perform retesting to confirm that new procedures address the previously identified deficient control activities

D :

Analyze the new procedures, then report to senior management whether the associated risks have been managed.

Answer: C

Question 5

Which of the following is the primary reason for internal auditors to conduct interim communications with management of the area under review?

Options :

A : To demonstrate good project oversight

B : To provide timely discussion of results

C : To demonstrate internal auditor proficiency

D : To follow up on previously requested information

Answer: B

Confidently Practice Online with Free IIA-CIA-Part2-3P Exam Cram

Buying Options: