IIA IIA-CIA-Part1 Quiz 70 Topic 4 Questions 346-350

Question: 1

An internal auditor obtains spreadsheets created by the finance department of an organization. The internal auditor contacts a third party about the source data that was utilized to create the spreadsheets before going on to perform a ratio analysis and a comparison of budget versus actual dat

a. What is the most likely reason that the internal auditor involved a third party before performing further analysis?

ATo determine if a later re-performance for testing mechanical accuracy would be possible.

BTo confirm that the spreadsheets could be used as a source of analytic data.

CTo determine what future usage limitations the spreadsheets might have.

DTo obtain a reliable verification about the accuracy of the source data.

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Question: 2

An internal auditor is preparing a draft observation based on her assessment of an accounts payable process. Which of the following is a process recommendation?

AAuthorization policy for accounts payable was not followed for payments above $10, 000.

BAuthorization policy requires two levels of approval for all payments above $10, 000.

CBecause of non-compliance with authorization policy, inappropriate payments may be made for payments above $10, 000.

DThe accounts payable authorization actions for all payments should be automated.

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Question: 3

During the planning phase of an audit, an internal auditor preliminarily concluded that the controls for a process were adequately designed to manage the associated risk. Under what conditions might this preliminary assessment subsequently prove to be unreliable?

ACompensating controls from other processes were not present.

BRedundant controls are not in place to enhance well designed controls.

CEntity level controls are informal and not consistently enforced.

DProcess controls were not developed from an existing key control checklist.

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Question: 4

Which of the following is not part of the five-attribute approach to developing documentation for an audit observation?

ACondition.

BEffect.

CManagement response.

DRecommendation.

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Question: 5

Which of the following types of information would an internal auditor expect to find in the supporting documentation for a high-level accounts payable process flowchart?

AA copy of the new customer request form.

BAn overview of the steps for validating invoices.

CThe number of payments paid before the due date of the invoice.

DThe payment terms and credit limit of the vendor to be paid.

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IIA IIA-CIA-Part1 Quiz:70 Topic:4 Questions:346-350