IIA IIA-CIA-Part2 Quiz 12 Topic 1 Questions 56-60

Question: 1

During an audit of a branch bank, an internal auditor learned that a series of system failures had resulted in a four-day delay in processing customers' scheduled payroll direct deposits. The first failure was that of a disk drive, followed by software and other minor failures. Which of the following controls should the auditor recommend to avoid similar delays in processing?

AContingency planning.

BRedundancy checks.

CProcess monitoring.

DPreventive maintenance.

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Question: 2

An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau. What action should the auditor take, considering the outsourcing decision?

AReview the controls over payroll in both the company and the service bureau.

BReview only the company's controls over data sent to and received from the service bureau.

CReview only the controls over payments to the service bureau based on the contract.

DCancel the engagement because the processing is being performed outside of the organization.

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Question: 3

An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. The best control to ensure that the table is updated correctly for only valid pay changes would be to:

ALimit access to the data table to management and line supervisors who have the authority to determine pay rates.

BRequire a supervisor in the department, who does not have the ability to change the table, to compare the changes to a signed management authorization.

CEnsure that adequate edit and reasonableness checks are built into the automated system.

DRequire that all pay changes be signed by the employee to verify that the change goes to a bona fide employee.

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Question: 4

A code of ethics within the internal auditing profession is necessary in order to:

AReduce the likelihood that members of the profession will be sued for substandard work.

BEnsure that all members of the profession perform at approximately the same level of competence.

CProvide guidance to internal auditors in their service to others.

DRequire members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.

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Question: 5

An internal audit activity implemented an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their test results. The auditors can conclude that:

AThe system is properly capturing the hours worked by employees during the year and the hours have been properly submitted to payroll and processed correctly.

BAll employees were correctly paid during the year and their pay was correctly computed.

CThe computer application and its control procedures were processing payroll transactions correctly during the past year.

DAll of the above.

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IIA IIA-CIA-Part2 Quiz:12 Topic:1 Questions:56-60