IIA IIA-CIA-Part1 Quiz 60 Topic 10 Questions 296-300

Question: 1

For a bank handling large amounts of cash, which of the following types of control would be the most effective to use?

ADetective controls.

BCorrective controls.

CPreventive controls.

DDirective controls.

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Question: 2

An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.

Upon being informed, the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.

Which course of action should the CAE follow?

AReport the communication to the organization's general counsel.

BReport the instruction to the chairperson of the audit committee.

CInform the head of the organization that the investigation will continue as planned.

DInform the external auditors of the findings and the mandate to stop investigating.

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Question: 3

Which of the following would be outside the scope of acquiring and developing human resources for an internal audit department?

ARequiring audit staff to participate in continuing education activities.

BWriting job descriptions for audit staff, audit managers, and other auditing positions.

CConducting individual counseling sessions regarding professional development and performance.

DEvaluating auditors' compliance with standards and level of audit effectiveness.

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Question: 4

Which of the following statements about risk assessment is true?

ARisk assessment focuses on the quantitative evaluation of exposures.

BRisk assessment evaluates risk both on an inherent and residual basis.

CRisk assessment determines the organization's tolerance for exposure.

DRisk assessment is the amount of inherent risk in a separately identifiable business entity.

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Question: 5

Which of the following statements regarding an internal auditor's responsibility for detecting fraud is not correct?

AThe auditor should have sufficient knowledge to detect red flags.

BThe auditor may obtain assistance from outside experts in areas where the auditor is not sufficiently proficient.

CThe auditor should identify control weaknesses which could allow fraud to occur.

DThe auditor should detect fraud before recommending a fraud investigation should take place.

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IIA IIA-CIA-Part1 Quiz:60 Topic:10 Questions:296-300