IIA IIA-CIA-Part1 Quiz 63 Topic 6 Questions 311-315

Question: 1

Which of the following is accomplished by the internal audit charter?

AIt establishes the audit committee's position within the organization.

BIt authorizes access to records, personnel and physical properties relevant to the performance of engagements.

CIt defines the scope of internal and external audit activities.

DIt states the nature of the chief audit executive's administrative reporting relationship with the board.

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Question: 2

A product manager occasionally overrides established purchasing policies in order to expedite the introduction of new products in a competitive industry. The manager's overrides are:

AUnacceptable as they are not consistent with the purchasing policy.

BOnly acceptable if the override is within the manager's spending limit.

COnly acceptable if a policy governing such overrides is in place and they are reported.

DAcceptable due to the highly competitive nature of the industry.

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Question: 3

An internal auditor for a large computer company suspects that returned computer systems are being repackaged as new products and shipped to other customers before the defects have been repaired. Which of the following would be the most persuasive piece of evidence in support of the auditor's suspicions?

ACredit memos issued after year end for goods shipped before year end.

BEvidence of returned goods in the shipping and receiving area.

CAn unusual number of customer complaints.

DThe results of a complete physical inventory taken at year end.

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Question: 4

While conducting an audit, an internal auditor notices an unusual increase in sales among a small number of units within the organization. The units also experienced persistent negative cash flows despite reported earnings and earnings growth. Which type of fraud do the auditor's findings most likely indicate?

AEmployee collusion with customer organizations.

BImproper asset valuation.

CInventory theft.

DFictitious revenues.

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Question: 5

Which fraudulent act is designed primarily to benefit the organization?

AFictitious sale or assignment of assets.

BAuthorization of payment for hours not worked.

CTheft or misappropriation of funds.

DAcceptance of bribes or kickbacks.

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IIA IIA-CIA-Part1 Quiz:63 Topic:6 Questions:311-315