IIA IIA-CIA-Part1 Quiz 115 Topic 4 Questions 571-575

Question: 1

A manufacturer uses a materials requirements planning (MRP) system to track inventory, orders, and raw materials requirements. What condition should an auditor search for in the MRP database if a preliminary assessment indicated that inventory is understated?

I . Item cost set at zero.

II . Negative quantities on hand.

III . Order quantity exceeding requirements.

IV . Inventory lead times exceeding delivery schedule.

AI and II only

BI and IV only

CII and IV only

DIII and IV only

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Question: 2

To identify those components of a telecommunications system that present the greatest risk, an internal auditor should first:

AReview the open systems interconnect network model.

BIdentify the network operating costs.

CDetermine the business purpose of the network.

DMap the network software and hardware products into their respective layers.

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Question: 3

The chief audit executive's responsibility regarding control processes includes:

AAssisting senior management and the audit committee in the development of an annual assessment about internal control.

BOverseeing the establishment of internal control processes.

CMaintaining the organization's governance processes.

DEnsuring that the internal audit activity assesses all control processes annually.

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Question: 4

In order to save time, an audit manager no longer required that a standard internal control questionnaire be completed for each audit engagement. Does this represent a violation of the Standards?

AYes, because internal control should be evaluated on every engagement and the internal control questionnaire is the mandated approach to evaluate controls.

BYes, because internal control should be evaluated on every engagement and the internal control questionnaire is the most efficient method to do so.

CNo, because auditors may omit necessary procedures if there is a time constraint, based on audit judgment.

DNo, because auditors are not required to complete internal control questionnaires on every engagement.

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Question: 5

The primary reason that a bank would maintain a separate compliance function is to:

ABetter manage perceived high risks.

BStrengthen controls over the bank's investments.

CEnsure the independence of line and senior management.

DBetter respond to shareholder expectations.

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IIA IIA-CIA-Part1 Quiz:115 Topic:4 Questions:571-575