IIA IIA-CIA-Part2 Quiz 31 Topic 2 Questions 151-155

Question: 1

Recommendations should be included in the audit report in order to:

AProvide management with options for addressing audit findings.

BEnsure that audit findings are resolved in the manner suggested by the auditor.

CMinimize the amount of time required to correct audit findings.

DEnsure that audit findings are addressed by management.

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Question: 2

Which of the following represents appropriate evidence of supervisory review of engagement workpapers?

1. A supervisor's initials on each workpaper.

2. An engagement workpaper review checklist.

3. A memorandum specifying the nature, extent, and results of the supervisory review of workpapers.

4. Performance appraisals that assess the quality of workpapers prepared by auditors.

AII and IV only

BI, II, and III only

CI, III, and IV only

DI, II, III, and IV.

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Question: 3

An internal auditor found that the cost of some material installed on capital projects had been transferred to the inventory account because the capital budget had been exceeded. Which of the following would be an appropriate technique for the auditor to use to determine the extent of the problem?

AIdentify variances between amounts capitalized each month and the capital budget.

BAnalyze a sample of capital transactions each quarter to detect instances in which installed material was transferred to inventory.

CReview all journal entries that transferred costs from capital to inventory accounts.

DCompare inventory receipts with debits to the inventory account and investigate discrepancies.

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Question: 4

When conducting audit follow-up of a finding related to cash management routines, an internal auditor would expect to find that all of the following changes have occurred except:

AThe steps being taken are resolving the condition disclosed by the finding.

BInherent risk has been eliminated as a result of resolution of the condition.

CControls have been implemented to deter or detect a recurrence of the finding.

DBenefits have accrued to the entity as a result of resolving the condition.

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Question: 5

A performance audit engagement typically involves:

AReview of financial statement information, including the appropriateness of various accounting treatments.

BTests of compliance with policies, procedures, laws, and regulations.

CAppraisal of the environment and comparison against established criteria.

DEvaluation of organizational and departmental structures, including assessments of process flows.

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IIA IIA-CIA-Part2 Quiz:31 Topic:2 Questions:151-155