IIA IIA-CIA-Part1 Quiz 102 Topic 3 Questions 506-510

Question: 1

A tax consultancy agency retains sensitive personal information regarding its clients. Which of the following is a violation of acceptable privacy practices?

ACopies of printed client information not used by the agency are shredded.

BEmployees share client information with coworkers with the permission of the client.

CThe agency only releases client information with management's approval.

DThe agency advises clients of their privacy rights before they commence business with the agency.

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Question: 2

When an external auditor unknowingly fails to modify an opinion on financial statements that are materially misstated, this is an example of:

AAn inherent risk.

BA control risk.

CAn audit risk.

DA residual risk.

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Question: 3

When a risk assessment process has been used to construct an audit engagement schedule, which of the following should receive attention first?

AThe external auditors have requested assistance for their upcoming annual audit.

BA new accounts payable system is currently undergoing testing by the information technology department.

CManagement has requested an investigation of possible lapping in receivables.

DThe existing accounts payable system has not been audited over the past year.

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Question: 4

All of the following would normally be involved in preparing for and carrying out the internal audit activity's annual plan except:

AEstablishing policies and procedures for workpapers and referencing.

BProviding periodic activity reports to the audit committee on audit engagements in progress.

CAssessing the amount of risk in major departments.

DTraining audit staff on appropriate audit methodologies for addressing any newly identified risks.

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Question: 5

When reviewing operational risk for a department whose manager adopts a laissez-faire style of leadership, it is most important for the internal auditor to verify that:

AEmployee decisions follow department and company guidelines.

BThe manager considers employees' input when designing new procedures.

CEmployees are empowered to deal with unusual or emergency situations.

DManagement has adopted an open-door policy to assist with communication.

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IIA IIA-CIA-Part1 Quiz:102 Topic:3 Questions:506-510