IIA IIA-CIA-Part1 Quiz 84 Topic 1 Questions 416-420

Question: 1

Which of the following should an internal auditor possess in order to fulfill the responsibilities of the internal audit activity?

AProficiency in applying management principles in order to stand in for the chief financial officer.

BAn understanding of management principles in order to evaluate deviations from good practices.

CAn appreciation of internal audit standards in order to recognize problems.

DProficiency in accounting principles in order to conduct fraud investigations.

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Question: 2

Which of the following statements best describes the competency requirement for an auditor regarding fraud risks encountered in an engagement execution?

AThe auditor should be able to have comparable competencies of a person whose primary responsibility is detecting and investigating fraud.

BThe auditor must have sufficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization.

CThe auditor is not expected to have any competency requirement regarding fraud since the role of investigating and detecting fraud belongs to other functions in the organization.

DThe auditor must be able to have an appreciation of the fundamentals of fraud detection and investigation techniques.

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Question: 3

An external quality assurance review which was authorized by the chief audit executive (CAE) indicated significant findings from the Standards. To whom should the final results of the quality assurance review be reported?

AConfidentially to the CAE only

BThe CAE with copies to the board and senior management.

CTo the board with copies to the external auditor or regulatory oversight body.

DTo the senior management with a copy to the board.

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Question: 4

Which of the following topics would a chief audit executive most likely include with their report to the board?

AThe status of labor contract negotiations at the largest manufacturing plant.

BA significant level of senior management turnover throughout the organization.

CA recent management hire to oversee labor concerns.

DAnalyses of recent increases in overtime.

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Question: 5

An organization's sales professionals are potentially abusing the use of cellular phones, resulting in an alarming increase in telephone expenses. Which of the following controls is least likely to curb this abuse?

ADeveloping periodic reports to management that show type, length, and number of calls per sales professional, with related totals and comparisons.

BRequiring sales professionals to pay monthly cellular phone bills and subsequently submit only business calls for reimbursement using an expense report process.

CRequiring sales managers to approve monthly bills prior to payment, explain budget variances, and explain increases from previous periods.

DRequiring authorization of the cellular phone bill payment by the manager of the telecommunications department.

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IIA IIA-CIA-Part1 Quiz:84 Topic:1 Questions:416-420