IIA IIA-CIA-Part2 Quiz 59 Topic 5 Questions 291-295

Question: 1

The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality assessment program. According to IIA guidance, which of the following would be part of this program?

AAssessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.

BAssessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.

CCompliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.

DCompliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.

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Question: 2

According to IIA guidance, which of the following are acceptable strategies for an internal audit activity (IAA) to establish or build relationships?

AAssist executives with their administrative and governance responsibilities, and encourage all IAA members to develop relationships with the organization's executives.

BAssist executives with their administrative and governance responsibilities, and ensure that all communications with the board are formal audit reports or preset agendas.

CDuring an engagement, restrict communications with affected executives to matters pertaining to the engagement; and encourage all IAA members to develop relationships with the organization's executives.

DDuring an engagement, restrict communications with affected executives to matters pertaining to the engagement; and ensure that all communications with the board are formal audit reports or preset agendas.

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Question: 3

During an audit of an ethics program, which of the following procedures are most appropriate to evaluate the effectiveness of the program?

* Testing whether corrective actions taken on involved parties breaching the ethics program are adequate.

* Testing whether all employees are mandated through policy to comply with the ethics program.

* Testing whether all employees are required to confirm in writing their compliance with the ethics program.

* Testing through surveys employee's level of understanding and commitment to the ethics program.

A1 and 2 only

B1 and 4 only

C2 and 3 only

D3 and 4 only

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Question: 4

An internal auditor has been assigned to perform a quality audit on a manufacturing plant. Which course of action should the auditor perform first?

ACompare the planned outputs with the actual outputs.

BAscertain the costs of materials purchased.

CEvaluate the plant's ability to meet production quotas.

DReview the levels of scrap and rework.

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Question: 5

Because of a new marketing initiative, an organization has reduced requirements for extending credit to new customers. As a result, outstanding accounts receivable as a percentage of revenue has increased significantly during the past two years. Which of the following would be least useful in monitoring this finding?

AUpdates from the manager of accounts receivable regarding collection of outstanding receivables.

BUpdates from the information technology division regarding development of a new accounts receivable system.

CUpdates from the controller regarding the status of corrective actions.

DUpdates from the credit and marketing personnel tasked with reevaluating credit policies.

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IIA IIA-CIA-Part2 Quiz:59 Topic:5 Questions:291-295