IIA IIA-CIA-Part2 Quiz 11 Topic 1 Questions 51-55

Question: 1

As part of an operational audit of the shipping department, an auditor selected a sample of 45 daily shipping logs from the department's files. On 44 of the days, the log contained a sufficient number of shipments to meet the department's daily quot

a. Based on this test, the auditor concluded that the shipping department was effective at meeting its quotas. Which of the following is true about the auditor's conclusion?

AThe number of items selected for testing is inadequate to justify the conclusion.

BThe shipping department is effective in meeting its responsibilities.

CThis conclusion would negate any need to perform tests of efficiency.

DNone of the above.

Show Answer

Question: 2

An internal auditor provided the following statement about division A's performance during the month: 'Because supplies of raw material X were scarce, division A's profits declined by 15 percent.'

Which of the following can be validly concluded from the auditor's statement?

1. Division A's production level declined by 15 percent.

2. Division A could have sold more products than it produced.

3. Division A usually sells all of the products that it produces.

AI only

BII only

CIII only

DI and II only

Show Answer

Question: 3

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

AAn internal auditor, who has recently joined the organization, has accepted an assignment to audit the electronics manufacturing division. The auditor previously served as senior auditor for the external audit of that division and has audited many electronics companies during the past two years.

BAn internal auditor has accepted an assignment to audit the warehousing function six months from now. The auditor has no expertise in that area but has signed up for courses in warehousing that will be completed before the assignment begins.

CAn internal auditor has no ambitions for promotion and has not engaged in training or other professional development activities during the last three years. The auditor's performance assessments indicate consistent quality of work.

DAn internal auditor discovered an internal financial fraud during the year, and the financial statements were adjusted to properly reflect the loss associated with the fraud. The auditor discussed the fraud with the external auditor during the external auditor's review of the working papers detailing the incident.

Show Answer

Question: 4

An auditor decides to perform an inventory turnover analysis for both raw materials inventory and finished goods inventory. The analysis would be potentially useful in:

1. Identifying products for which management has not been attuned to changes in market demand.

2. Identifying potential problems in purchasing activities.

3. Identifying obsolete inventory.

AIII only

BI and II only

CII and III only

DI, II, and III

Show Answer

Question: 5

Which of the following will be an appropriate course of action when an auditor disagrees with a client about a well-documented audit finding?

AInclude both the audit finding and the client's position in the audit report.

BDefer reporting the item and plan to perform more detailed work during the next audit.

CChange the finding so that it is acceptable to the client.

DAddress the issue with senior management and the board for resolution prior to issuing the final report.

Show Answer

IIA IIA-CIA-Part2 Quiz:11 Topic:1 Questions:51-55