IIA IIA-CIA-Part1 Quiz 56 Topic 6 Questions 276-280

Question: 1

Which of the following actions would have the greatest impact on the effectiveness of the internal audit activity?

AAppropriate compliance coverage in the annual audit plan.

BAnnual review of the audit charter by management.

CAppropriate definition of internal audit scope and responsibility in the charter.

DAssurance of internal audit objectivity and organizational independence by the board.

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Question: 2

An organization references a customer order with an approved customer file and credit limit before accepting an order. Which type of control does this process exemplify?

AQuality control monitoring.

BDirect functional management.

CInformation processing.

DPerformance indicators.

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Question: 3

When conducting a preliminary survey, which of the following audit activities should an internal auditor complete first?

AIdentify risks and controls intended to prevent associated losses.

BWrite detailed audit procedures.

CIdentify client objectives, goals, and standards.

DDetermine relevant engagement objectives.

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Question: 4

An internal auditor is planning an audit of an organization where temporary employees are suspected of receiving pay for hours they have not worked. Which of the following tasks should not be performed at this stage in the audit?

AInterviewing the manager who requested the audit engagement.

BObtaining a copy of the contract between the organizations and the temporary employment agency.

CInterviewing shift supervisors about their employees' attendance.

DPreparing an engagement program.

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Question: 5

Which of the following policies exemplifies a control weakness in the approval and oversight of credit sales?

AThe credit department is responsible for approving shipments to all customers.

BThe head of the sales department can authorize credit lines for large customers.

CThe finance committee of the board of directors periodically reviews credit standards.

DCustomers who fail to meet credit requirements must pay cash for shipments upon delivery.

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IIA IIA-CIA-Part1 Quiz:56 Topic:6 Questions:276-280