IIA IIA-CIA-Part1 Quiz 54 Topic 2 Questions 266-270

Question: 1

In which of the following circumstances would an internal auditor not need to search for other signs of fraud?

AThe organization has an unusually high increase in costs.

BThere are several substantial weaknesses with the internal control structure.

CManagement institutes a policy of paying vendors promptly in order to avoid incurring penalty charges.

DOne of the employees seems to have had a dramatic increase in their standard of living.

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Question: 2

Which of the following statements is not true about red flags?

AIt can be challenging to quantify red flags.

BThere is a scarcity of established literature on red flags.

CRed flags can point auditors to intentional wrongdoing, errors and omissions, inefficiency, and conflicts of interest.

DRed flags do not necessarily mean that fraud exists.

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Question: 3

Which of the following is the best method for testing the accuracy of a computer program's calculation of shipping charges?

AUse either test data or parallel simula-tion to test the computer program.

BUse generalized audit software to select a monetary-unit sample of invoices that have been billed to customers.

CSelect transactions from invoices with shipping charges using difference estimation.

DSelect transactions from invoices with shipping charges using discovery sampling.

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Question: 4

Which of the following examples best describes how an internal auditor should behave while listening to an engagement client talk about human resource process problems?

AThe auditor should gather their thoughts in order to have a response immediately ready for the client.

BThe auditor should integrate the information the client provides with the information that is already known.

CThe auditor should make an internal note of the client's gestures, demeanor, and body language, rather than paying close attention to the content of the discussion.

DThe auditor should mentally plan the next steps of the audit engagement.

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Question: 5

Which of the following is an advantage of email surveys compared to face-to-face interviews?

AThey are less expensive.

BThey have higher rates of response.

CSurvey designers are able to use a broader variety of questions.

DRespondents can easily get clarification on questions from survey designers or interviewers.

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IIA IIA-CIA-Part1 Quiz:54 Topic:2 Questions:266-270