IIA IIA-CIA-Part2 Quiz 168 Topic 3 Questions 836-840

Question: 1

A follow-up review found that a significant internal control weakness had not been corrected. The chief audit executive (CAE) discussed this matter with senior management and was informed of management's willingness to accept the risk. The CAE should

ADo nothing further because management is responsible for deciding the appropriate action to be taken in response to reported engagement observations and recommendations.

BInitiate a fraud investigation to determine if employees had taken advantage of the internal control weakness.

CInform senior management that the weakness must be corrected and schedule another follow-up review.

DAssess the reasons that senior management decided to accept the risk and inform the board of senior management's decision.

Show Answer

Question: 2

An audit committee is concerned that management is not addressing all internal audit observations and recommendations. What should the audit committee do to address this situation?

ARequire managers to provide detailed action plans with specific dates for addressing audit observations and recommendations.

BRequire all managers to confirm when they have taken action.

CRequire the chief executive officer to report why action has not been taken.

DRequire the chief audit executive to establish procedures to monitor progress.

Show Answer

Question: 3

An audit of accounts payable found that the individuals responsible for maintaining the vendor master file could also enter vendor invoices into the accounts payable system. During the exit conference, management agreed to correct this problem.\hen performing a follow-up engagement of accounts payable, the auditor should expect to find that management had

ATransferred the individuals who maintained the vendor master file to another department to ensure responsibilities were appropriately segregated.

BCompared the vendor and employee master files to determine if any unauthorized vendors had been added to the vendor master file.

CModified the access control system to prevent employees from both entering invoices and approving payments.

DModified the accounts payable system to prevent individuals who maintained the vendor master file from entering invoices.

Show Answer

Question: 4

Engagement information is usually considered relevant when it is

ADerived through valid statistical sampling.

BObjective and unbiased.

CFactual, adequate, and convincing.

DConsistent with the engagement objectives.

Show Answer

Question: 5

To determine the sufficiency of information regarding interpretation of a contract, an internal auditor uses

AThe best obtainable information.

BSubjective judgments.

CObjective evaluations.

DLogical relationships between information and issues.

Show Answer

IIA IIA-CIA-Part2 Quiz:168 Topic:3 Questions:836-840