Question 1

An internal auditor using the five-attribute approach to document deficiencies in a warehouse shipping process. Which of the following attributes will be included in the workpapers?

Options :

A : Risk, impact likelihood existing control, recommendation

B : Condition, cause, effect, recommendation

C : Condition, cause effect test result

D : Risk, impact test result recommendation

Answer: B

Question 2

When setting the scope for the identification and assessment of key risks and controls in a process, which of the following would be the least appropriate approach?

Options :

A :

Develop the scope of the audit based on a bottom-up perspective to ensure that all business objectives are considered.

B :

Develop the scope of the audit to include controls that are necessary to manage risk associated with a critical business objective.

C :

Specify that the auditors need to assess only key controls, but may include an assessment of non-key controls if there is value to the business in providing such assurance

D :

Ensure the audit includes an assessment of manual and automated controls to determine whether business risks are effectively managed.

Answer: A

Question 3

Which of the following is a disadvantage of using flowcharts during a risk assessment?

Options :

A : People cannot quickly understand the processes via flowcharts

B : Flowcharts are not applicable for evaluating the design of controls

C : Some serious risks that are not part of the linear process can be missed

D : Flowcharts do not enable auditors to identify missing controls

Answer: C

Question 4

In a health care organization the internal audit activity provides overall assurance on governance, risk and control The chief audit executive advises and influences senior management, and the audit strategy leverages the organization's management of risk According to HA guidance which of the following stages of internal audit maturity best describes this organization?

Options :

A : Infrastructure.

B : Emerging.

C : Managed.

D : Initial.

Answer: C

Question 5

Which of the following best describes external benchmarking using trend analysis for a subsidiary of an international company?

Options :

A :

Comparing the current ratio of the subsidiary with the current ratio of another company for the same period

B :

Comparing common-size financial statements of the subsidiary with the averages of the industry for the last two periods

C : Comparing the sales of the subsidiary with the sales of another subsidiary for the last two periods.

D : Comparing the sales of the subsidiary with the budgeted figures for the last two periods

Answer: B

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

Buying Options: