IIA IIA-CIA-Part1 Quiz 82 Topic 2 Questions 406-410

Question: 1

Which of the following would be an appropriate outcome of a quality assurance and improvement program in an internal audit activity?

1. Modification of resources.

2. Corrections to procedures.

3. Changes in processes.

4. Implementation of new technology.

A2 and 4 only

B3 and 4 only

C1, 2, and 3 only

D1, 2, 3, and 4

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Question: 2

Which of the following actions by the internal audit activity provides strong evidence that it is organizationally independent?

AIt reviews engagement results for evidence of undue influence before releasing the final report.

BIt requires all internal audit staff to sign annual non-disclosure and potential conflict of interest statements.

CIt maintains direct interactions with the audit committee or board.

DIt releases an approved internal audit charter stating that the internal audit activity is independent.

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Question: 3

Which of the following statements is correct with regard to risk management?

AThe board's responsibility for risk management cannot be assigned to a board committee, such as a board risk committee.

BThe chief audit executive is accountable to the board for designing, implementing and monitoring the risk management process.

CThe total process of risk management, which includes a related system of internal control, is the responsibility of the board.

DThe finance director is responsible for the overall implementation of the risk management process.

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Question: 4

A receiving department receives copies of purchase orders for use in identifying and recording inventory receipts.

The purchase orders list the name of the vendor and the quantities of the materials ordered.

A possible error that this system could allow is:

APayment to unauthorized vendors.

BPayment for unauthorized purchases.

COverpayment for partial deliveries.

DDelay in recording purchases.

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Question: 5

Which of the following is least likely to be considered material in an audit of a medium-sized organization?

AA $1, 000 overstatement of the accrued-vacation payable account.

BA violation of a government statute.

CFraud resulting in a cash loss to the organization.

DAn underpayment to the employee pension fund.

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IIA IIA-CIA-Part1 Quiz:82 Topic:2 Questions:406-410