IIA IIA-CIA-Part1 Quiz 5 Topic 5 Questions 21-25

Question: 1

Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?

1. Acceptance of CAATs findings by entity management.

2. Computer knowledge and expertise of the auditor.

3. Time constraints.

4. Level of audit risk.

A1 and 4

B2 and 3 only

C1, 2, and 3

D2, 3, and 4

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Question: 2

An internal auditor uses a predefined macro provided in a popular spreadsheet application to verify the present value of the organization's investments. Which of the following is the most appropriate course of action regarding the auditor's use of this functionality?

AThe auditor should accept the calculations generated by the function, as any further work or documentation would be inefficient.

BThe auditor should perform a manual recalculation of several results to validate and document the results.

CThe auditor should review the programming of the macro before its use to ensure that it is appropriate for the required calculations.

DThe auditor should tabulate the results in the spreadsheet to ensure the macro has generated the correct results for all calculations.

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Question: 3

While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?

1. Ensure all tests use a random sampling technique.

2. Consider a judgmental approach for the sample size.

3. Assess testing errors through root cause analysis.

4. Ensure that the entire data set is tested.

A1 and 2.

B1 and 3.

C2 and 3.

D2 and 4.

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Question: 4

Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

AObservation of the facility during operations.

BQuestioning of facility management, including the facility safety officer.

CAnalysis of facility operating reports, focusing on instances when breakdowns occurred.

DReview of records involving safety violations, filed by facility production employees.

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Question: 5

Which of the following combinations of conditions is most likely a red flag for fraud?

AThe practice of surprise audits and the implementation of an employee support program.

BHiring an employee with a prior fraud conviction and yearly management review.

COccasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

DA veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.

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IIA IIA-CIA-Part1 Quiz:5 Topic:5 Questions:21-25