IIA IIA-CIA-Part2 Quiz 196 Topic 2 Questions 976-980

Question: 1

According to the Standards, final engagement communications should be distributed to those members of the organization who are able to ensure that engagement results are given due consideration. For higher-level members of the organization, that requirement can usually be satisfied with

AInterim reports.

BSummary reports.

COral reports.

DFinal written reports only.

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Question: 2

While performing an operational engagement involving the firm's production cycle, an internal auditor discovers that, in the absence of specific guidelines, some engineers and buyers routinely accept vacation trips paid by certain of the firm's vendors. Other engineers and buyers will not accept even a working lunch paid for by a vendor. Which of the following actions should the internal auditor take?

ANone. The engineers and buyers are professionals. An internal auditor should not inappropriately interfere in what is essentially a personal decision.

BInformally counsel the engineers and buyers who accept the vacation trips. This helps prevent the possibility of kickbacks, while preserving good internal auditor-engagement client relations.

CFormally recommend that the organization establish a code of ethics. Guidelines of acceptable conduct, within which individual decisions may be made, should be provided.

DIssue a formal engagement communication naming the personnel who accept vacations but make no recommendations. Corrective action is the responsibility of management.

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Question: 3

During an engagement involving the receiving section of the purchasing division, the internal auditor discovers that a receiving problem might be the result of procedures followed in the procurement section. The internal audit activity's management agrees that the internal auditor should extend the engagement, on a limited scale, into the procurement section. According to the Standards, which device should be used to communicate the change in engagement scope to the engagement client?

AAn informal notification of the involved supervisor.

BA formal written communication to the involved supervisor.

CA written interim communication to the involved supervisor and the same distribution as the original correspondence scheduling the engagement.

DNo communication is necessary if the internal audit activity's charter specifies the unrestricted scope of its work.

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Question: 4

You are conducting an engagement to evaluate the organization's marketing effort. You agreed to keep the marketing vice president informed of your progress on a regular basis. What method should be used for those progress reports?

AOral or written interim reports.

BWritten reports signed by the chief audit executive.

CCopies of working paper summaries.

DBriefing by the appropriate marketing first-line supervisor.

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Question: 5

During an engagement involving sales representatives' travel expenses, the internal auditor discovered that 152 of 200 travel advances issued to sales representatives in the past year exceeded the prescribed maximum amount allowed. Which of the following statements is a justifiable engagement opinion?

AThe majority of travel advances in the organization exceed the prescribed maximum.

BTravel advances are not controlled in accordance with existing policy.

CThe prescribed maximum travel advance is too low.

DSeventy-six percent of all travel advances exceed the management-prescribed maximum.

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IIA IIA-CIA-Part2 Quiz:196 Topic:2 Questions:976-980