IIA IIA-CIA-Part1 Quiz 120 Topic 3 Questions 596-600

Question: 1

Which of the following best describes how the increased use of computerization may impact an auditor's assessment of the risk of fraud?

AAccess to assets may be available to information systems personnel as well as to computer users.

BComputer controls are generally less effective than human review.

COverrides of key controls may require less collaboration.

DAudit trails are less effective.

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Question: 2

An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if.

AThe auditor notes strong indicators of a specific fraud involving this account.

BThe company has relatively stable operations which have not changed much over the past year.

CThe auditor would like to identify large, unusual, or non-recurring transactions during the year.

DThe operating expenses vary in relation to other operating expenses, but not in relation to revenue.

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Question: 3

Which of the following is not a benefit of using information technology in solving audit problems?

AIt helps reduce audit risk.

BIt improves the timeliness of the audit engagement.

CIt increases audit opportunities.

DIt improves the auditor's judgment.

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Question: 4

An organization has developed a large database that tracks employees, employee benefits, payroll deductions, job classifications, and other similar information. In order to test whether data currently within the automated system are correct, an auditor should:

AUse test data and determine whether all the data entered are captured correctly in the updated database.

BSelect a sample of data to be entered for a few days and trace the data to the updated database to determine the correctness of the updates.

CUse generalized audit software to provide a printout of all employees with invalid job descriptions. Investigate the causes of the problems.

DUse generalized audit software to select a sample of employees from the database. Verify the data fields.

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Question: 5

In order to ensure that the internal auditors have the objectivity required by the Standards, the chief audit executive should:

ADemonstrate willingness to include in engagement final communications all matters believed to be important.

BRequire all auditors to sign statements attesting to their independent mental attitudes and honest belief in their work product.

CCarefully assign personnel to individual audit engagements and require auditors to disclose all conflicts of interest.

DAppraise each auditor's performance on each audit assignment.

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IIA IIA-CIA-Part1 Quiz:120 Topic:3 Questions:596-600