IIA IIA-CIA-Part2 Quiz 224 Topic 3 Questions 1116-1120

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

The scope of a consulting engagement performed by internal auditors should

ABe sufficient to address the objectives agreed upon with the client.

BExclude areas that might be the subject of subsequent assurance engagements.

CBe limited to activities within the current operating period.

DBe preapproved in conjunction with the annual plan of consulting engagements.

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Question: 3

The scope of a business process review primarily involves

AAppraising the environment and comparing against established criteria.

BAssessing the organization's system of internal controls.

CReviewing routine financial information and assessing the appropriateness of various accounting treatments.

DEvaluating organizational and departmental structures, including assessments of transaction flows.

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Question: 4

The internal audit activity can be involved with systems development continuously, immediately prior to implementation, after implementation, or not at all. An advantage of continuous internal audit involvement compared to the other types of involvement is that

AThe cost of audit involvement can be minimized.

BThere are clearly defined points at which to issue audit comments.

CRedesign costs can be minimized.

DThe threat of lack of audit independence can be minimized.

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Question: 5

A bank is developing an integrated customer information system. The type of audit involvement that would most likely help avoid implementation of a system that does not cover all types of accounts would be

AA design review.

BAn application control review.

CA source code review.

DAn access control review.

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IIA IIA-CIA-Part2 Quiz:224 Topic:3 Questions:1116-1120