IIA IIA-CIA-Part1 Quiz 119 Topic 7 Questions 591-595

Question: 1

Which of the following audit activities is within the scope of assurance activities as stated in the International Professional Practices Framework?

AReview a make-or-buy decision and report a recommendation to management for approval.

BParticipate in negotiations for a corporate acquisition.

CAssess financing alternatives for a new generator.

DPerform an evaluation of management's planning process.

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Question: 2

Which of the following would be most effective in determining if the percentage of medication orders containing errors improved after a hospital installed a computerized medication-tracking system?

ACompare the proportion of erroneous medication orders before and after system installation for similar periods.

BCompare the number of errors before and after system installation for similar periods.

CCompare, after adjusting for the number of patients, the proportion of erroneous medication orders before and after system installation.

DCompare, after adjusting for the number of patients, the number of errors before and after system installation for similar periods.

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Question: 3

Which of the following would be the best source of information for a chief audit executive to use in planning future audit staff requirements?

ADiscussions of audit needs with executive management and the audit committee.

BReview of audit staff education and training records.

CReview of audit staff size and composition of similar-sized companies in the same industry.

DInterviews with existing audit staff.

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Question: 4

To determine if a new computer system is improving the use of a manufacturer's limited facilities in serving the largest number of customers, an auditor should compare.

AThe number of reworked orders and their costs before and after system installation.

BInventory and materials handling costs before and after system installation.

CThe number of orders filled and their cycle times before and after system installation.

DThe number of reworked orders and orders filled before and after system installation.

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Question: 5

In a manufacturing organization, all sales prices are determined centrally and are electronically sent to the distribution centers to update their sales price tables. Any pricing deviations must be approved by central headquarters. To determine how this process is functioning, an internal auditor should:

ADocument the flow of sales price information, and determine how the table is accessed and updated.

BDevelop a flowchart of the sales order process to determine how orders are taken and priced.

CIdentify who approves the shipment of goods and how the goods are priced.

DObtain a copy of the existing flowchart for the computer program to determine how price data are accessed.

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IIA IIA-CIA-Part1 Quiz:119 Topic:7 Questions:591-595