IIA IIA-CIA-Part2 Quiz 120 Topic 3 Questions 596-600

Question: 1

The accountant who prepared a spreadsheet model for workload forecasting left the company, and the accountant's successor was unable to understand how to use the spreadsheet. The best control for preventing such situations from occurring is to ensure that

AUse of end-user computing resources is monitored.

BEnd-user computing efforts are consistent with strategic plans.

CDocumentation standards exist and are followed.

DAdequate backups are made for spreadsheet models.

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Question: 2

The chief executive officer wants to know whether the purchasing function is properly meeting its charge to "purchase the right materials at the right time in the right quantities." Which of the following types of engagements addresses this request?

AA financial engagement relating to the purchasing department.

BAn operational engagement relating to the purchasing function.

CA compliance engagement relating to the purchasing function.

DA full-scope engagement relating to the manufacturing operation.

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Question: 3

The primary difference between operational engagements and financial engagements is that, in the former, the internal auditors

AAre not concerned with whether the client entity is generating information in compliance with financial accounting standards.

BAre seeking to help management use resources in the most effective manner possible.

CStart with the financial statements of the client entity and works backward to the basic processes involved in producing them.

DCan use analytical skills and tools that are not necessary in financial engagements.

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Question: 4

During an operational engagement, the internal auditors compare the current staffing of a department with established industry standards to

AIdentify bogus employees on the department's payroll.

BAssess the current performance of the department and make appropriate recommendations for improvement.

CEvaluate the adequacy of the established internal controls for the department.

DDetermine whether the department has complied with all laws and regulations
governing its personnel.

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Question: 5

An operational engagement relating to the production function includes a procedure to compare actual costs with standard costs. The purpose of this engagement procedure is to

ADetermine the accuracy of the system used to record actual costs.

BMeasure the effectiveness of the standard cost system.

CAssess the reasonableness of standard costs.

DAssist management in its evaluation of effectiveness and efficiency.

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IIA IIA-CIA-Part2 Quiz:120 Topic:3 Questions:596-600