IIA IIA-CIA-Part1 Quiz 118 Topic 8 Questions 586-590

Question: 1

It would be appropriate for an internal audit activity to use consultants with expertise in health-care benefits when the internal audit activity is:

I . Conducting an audit of the organization's estimate of its liability for post retirement benefits, which include health care benefits.

II . Comparing the cost of the organization's health care program with that of other programs offered in the industry.

III . Training its staff to conduct an audit of health care costs in a major division of the organization.

AI only

BI and III only

CII and III only

DI, II, and III.

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Question: 2

Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?

AAuditors must be given assignments based primarily upon their years of experience.

BAll auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.

CTasks must be assigned to the audit team member who is most qualified to perform them.

DAll audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.

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Question: 3

In advance of a preliminary survey, a chief audit executive sends a memorandum and questionnaire to the supervisors of the department to be audited. What is the most likely result of that procedure?

AIt creates apprehension about the audit engagement.

BIt involves the engagement client's supervisory personnel in the audit.

CIt is an uneconomical approach to obtaining information.

DIt is only useful for audits of distant locations.

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Question: 4

Which of the following steps would not be included in a program of selecting and developing human resources for an internal audit department?

AScheduling periodic meetings with individual auditors, during which the chief audit executive provides counsel regarding each auditor's performance and professional career development.

BEstablishing an internal review team to assess the auditors' and audit department's compliance with standards, level of audit effectiveness, and compliance with departmental policy.

CDeveloping specific job descriptions for audit staff, audit managers, and other auditing positions.

DEstablishing in-house training programs and requiring continuing education for audit staff.

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Question: 5

Auditors 1, 2, and 3 work out of various offices. Each must be assigned to one, and only one, of three audit locations (A, B, or C). The cost of sending each auditor to each location is listed below:

Audit Locations

Auditor 1

A

B

C

Auditor 2

$200

$300

$400

Auditor 3

$400

$300

$600

Auditor 4

$200

$500

The minimum cost with which this assignment can be accomplished is:

A$800

B$900

C$1, 000

D$1, 100

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IIA IIA-CIA-Part1 Quiz:118 Topic:8 Questions:586-590