IIA IIA-CIA-Part1 Quiz 124 Topic 8 Questions 616-620

Question: 1

Which of the following would be a violation of the IIA Code of Ethics?

AReporting information that could be damaging to the organization, at the request of a court of law.

BIncluding an issue in the final audit report after management has resolved the issue.

CParticipating in an audit engagement for which the auditor does not have the necessary experience or training.

DAccepting a gift that is a commercial advertisement available to the public.

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Question: 2

During a payroll audit of a large organization, an auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:

AContinue to follow the engagement program because the engagement scope and objectives have already been discussed with management.

BReview the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.

CRecommend to the chief audit executive that a fraud investigation be started.

DTest a sample of payroll changes to ensure that they were approved by the assistant director before being processed.

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Question: 3

The chief audit executive should periodically report the internal audit activity's purpose, authority, responsibility, and performance, as well as significant risk exposures and control issues, to which of the following?

I . Board of directors.

II . Senior management.

III . Shareholders.

IV . External auditors.

AII only

BI and II only

CI, II, and III only

DI, III, and IV only

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Question: 4

An audit to test the system of controls over the purchase, distribution, and use of radioactive material is being conducted at a company's plants. The process is well documented, and employees in the safety department are very familiar with the department's procedures. Since the purchasing and facilities departments are involved in the process, the auditor is considering reviewing their radioactive material-handling procedures as well. The auditor should:

AHave confidence in the rigorous and detailed safety department procedures, since that department has the main responsibility for radiation safety, and should not use audit time to review other departments.

BAdjust the engagement schedule and budget, if needed, and interview the appropriate individuals in the purchasing and facilities departments to ascertain whether additional controls exist that complement those identified within the safety department.

CTest the controls identified within the safety department; if results are unfavorable, the auditor should consider whether to involve the other departments.

DDefer questions regarding purchasing, facilities, and other departments until audit projects can be scheduled for those departments.

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Question: 5

If an engagement client's operating standards are vague and thus subject to interpretation, the auditor should:

ASeek agreement with the client as to the standards to be used to measure operating performance.

BDetermine best practices in the area and use them as the standard.

CInterpret the standards in their strictest sense because standards are otherwise only minimum measures of acceptance.

DOmit any comments on standards and the client's performance in relationship to those standards, because such an analysis would be meaningless.

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IIA IIA-CIA-Part1 Quiz:124 Topic:8 Questions:616-620