IIA IIA-CIA-Part2 Quiz 226 Topic 5 Questions 1126-1130

Question: 1

The efficiency of internal audit operations is best enhanced if workpaper standards

APermit the extent of documentation to vary according to engagement objectives.

BRequire supervisors to initial and date each workpaper that they review.

CAllow access to workpapers by external parties if approved by senior management or the audit committee.

DMandate the workpaper retention period.

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Question: 2

Recommendations should be included in the audit report in order to

AProvide management with options for addressing audit findings.

BEnsure that audit findings are resolved in the manner suggested by the auditor.

CMinimize the amount of time required to correct audit findings.

DEnsure that audit findings are addressed by management.

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Question: 3

A chief audit executive has noticed that staff auditors are presenting more oral reports to supplement written reports. The best reason for the increased use of oral reports is that they

AReduce the amount of testing required to support audit findings.

BCan be delivered in an informal manner without preparation.

CCan be prepared using a flexible format and reduce the information included in the written report.

DPermit auditors to counter arguments and provide additional information that the audience may require.

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Question: 4

Once an audit report is drafted, the auditor's supervisor should review it primarily to ensure that all

AStatements are supported and can be authenticated.

BRecommendations for corrective action are clear.

CProcesses within the audited area were reviewed.

DSample sizes appear appropriate for any issues found.

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Question: 5

A trucking company contracted a third party to construct a new vehicle maintenance facility. One of the trucking company's auditors was assigned to look for contractor overcharges. After reviewing the contract, the auditor recommended that an audit of the construction contract not be performed. What is the most likely reason for the auditor's recommendation?

AThe contract did not include a right to audit clause.

BThe contractor was engaged on a fixed price basis.

CThe contractor's billing system included comprehensive edit routines to detect overbilling.

DThe trucking company's accounts payable system compared amounts billed with contract terms to detect potential overcharges.

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IIA IIA-CIA-Part2 Quiz:226 Topic:5 Questions:1126-1130