IIA IIA-CIA-Part2 Quiz 13 Topic 2 Questions 61-65

Question: 1

In forming a team to investigate an organization's potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor's knowledge of:

AActivities and cost drivers.

BInformation processing procedures.

CCurrent product cost structures.

DInternal control alternatives.

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Question: 2

Which of the following is used to identify and prioritize critical business applications to determine those that must be restored and the order of restoration in the event that a disaster impairs information systems processing?

AContingent facility contract analysis.

BSystem backup analysis.

CVendor supply agreement analysis.

DRisk analysis.

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Question: 3

An auditor analyzed a payroll system's data files for unusual activity, such as excessive overtime hours, unusual fluctuations in pay rates, and excessive vacation time. The application controls being verified by this analysis are:

AEdit and validation controls.

BRejected and suspense item controls.

CControls over update access to the database.

DProgrammed balancing controls.

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Question: 4

During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?

AIssue an exception report.

BPay the amount billed and adjust the inventory account for the difference.

CReturn the invoice to the vendor for correction.

DAuthorize payment of the full invoice, but maintain an open purchase order record for the missing goods.

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Question: 5

What is the most important risk in determining the validity of construction delay claims?

AContractor claims may be submitted prior to completion of the work.

BContractor claims may include costs considered in the fixed-price portion of the work.

CContractor claims may include subcontractor estimates of balances due to the subcontractor.

DContractor claims may be understated.

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IIA IIA-CIA-Part2 Quiz:13 Topic:2 Questions:61-65