IIA IIA-CIA-Part1 Quiz 95 Topic 10 Questions 471-475

Question: 1

Which of the following elements is important for an internal auditor to consider when performing a privacy risk assessment of an organization?

I . Areas where personal information is collected, used, stored, and disseminated.

II . Inherent risk.

III . Privacy practices of competitors.

IV . Third-party recipients of information.

AIII only

BI and II only

CI, II, and IV only

DI, II, III, and IV.

Show Answer

Question: 2

A dental insurance provider has implemented an electronic claim submission process and is concerned that dentists are submitting claims for services that were not provided. Which of the following control procedures would be most effective in preventing this type of fraud?

ADevelop a program that identifies procedures performed on an individual which are either in excess of expectations based on the age of the insured or are similar to other procedures recently performed on the individual.

BRequire all submitted claims to be followed by a signed statement by the dentist testifying to the fact that the claimed procedures were performed.

CSend confirmations to the dentists requesting them to confirm the exact nature of the claims submitted to the insurance provider.

DDevelop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.

Show Answer

Question: 3

Reportable audit findings must be:

I . Documented by facts.

II . Supported by relevant evidence.

III . Agreed to by management of the audited area.

IV . Convincing enough to compel corrective action.

AI and IV only

BII and III only

CI, II, and IV only

DI, II, III, and IV.

Show Answer

Question: 4

Risk within an internal audit engagement is defined as the:

AProbability that a balance or class of transactions and related assertions contain misstatements that could be material to the financial statements.

BUncertainty of an event occurring that could have an impact on the achievement of objectives.

CFailure to adhere to organizational policies, plans, and procedures, or the failure to comply with relevant laws and regulations.

DFailure to accomplish established objectives and goals for operations or programs.

Show Answer

Question: 5

The percentage of orders that are rush orders and the percentage of returns to total orders are examples of which of the following types of control activities?

AQuality control monitoring.

BDirect functional management.

CBenchmarking.

DPerformance indicators.

Show Answer

IIA IIA-CIA-Part1 Quiz:95 Topic:10 Questions:471-475