IIA IIA-CIA-Part1 Quiz 96 Topic 4 Questions 476-480

Question: 1

The best reason for separating the cash-receiving function from the related record-keeping function is to:

ASegregate cash payments from cash receipts.

BProvide accountability for cash received.

CMinimize misappropriations in cash receipts.

DImprove physical security over the cash-receiving function.

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Question: 2

Which of the following is the primary concern of an internal auditor in a comprehensive audit of an organization?

AAccuracy of reports on the source and use of funds.

BExtent of achievement of the organization's mission.

CConfirmation of compliance with policies and procedures.

DAppropriateness of procedures related to the budgeting process.

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Question: 3

According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?

I . The audit committee has requested assurance of the treasury department's compliance with a new policy on the use of financial instruments.

II . Treasury management has not instituted any risk management policies.

III . Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.

IV . The external auditors have indicated some difficulties in obtaining account confirmations.

AI and II only

BI and IV only

CI, II, and III only

DII, III, and IV only

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Question: 4

If management has not established a risk management process, the internal audit activity could.

ATake a proactive role that supplements traditional assurance activities.

BIdentify and mitigate risks to the organization.

CAssume responsibility for the management of identified risks.

DAssume primary responsibility for determining if adequate and effective processes are in place.

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Question: 5

Which of the following audit findings would have the least impact (either positive or negative) on a department's control environment?

AThe department makes long-term investment risk decisions to maximize return on investment.

BThe department manager sets and demonstrates a tone of honesty and integrity in all business dealings.

CMany department functions are duplicated or verified by other department employees.

DDeficiencies were found in the appropriate authorization of transactions.

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IIA IIA-CIA-Part1 Quiz:96 Topic:4 Questions:476-480