IIA IIA-CIA-Part1 Quiz 75 Topic 10 Questions 371-375

Question: 1

The results of an internal control questionnaire revealed that all investment activity exceeding $10, 000 must be approved by the assistant treasurer. A sample of these transactions with a five-percent acceptable error rate found that 98 of the 100 items tested included the assistant treasurer's approval. Based on this data, the auditor should:

AConfirm all investment activity with the firm's broker since errors in approval had occurred.

BDecide not to perform further testing of investment authorizations.

CContact the corporate finance department to verify all of the investments held.

DPerform an analytical review of investment transactions in comparison with prior years to identify significant fluctuations.

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Question: 2

Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?

AVendor fuel invoices that have been reconciled to inventory records.

BTime cards completed by aircraft cleaning and fueling crews.

CObservation of selected aircraft while they are being refueled and cleaned.

DComparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.

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Question: 3

Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?

1. Company A exhibits a higher standard of ethical behavior than does company B.

2. Company A has established objective criteria by which an employee's actions can be evaluated.

3. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.

A2 only

B3 only

C1 and 2 only

D2 and 3 only

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Question: 4

During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts. Which of the following would most likely be the reason for the high volume of complaints?

AAn ineffective customer service department.

BPoor controls in the invoice approval processes.

CCheck tampering by an employee.

DSubmission of fraudulent expense reports.

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Question: 5

Which of the following data collection strategies systematically tests the effects of various factors on an outcome?

AContent analysis.

BSampling.

CEvaluation synthesis.

DModeling.

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IIA IIA-CIA-Part1 Quiz:75 Topic:10 Questions:371-375