IIA IIA-CIA-Part2 Quiz 156 Topic 5 Questions 776-780

Question: 1

Due professional care calls for

ADetailed reviews of all transactions related to a particular function.

BInfallibility and extraordinary performance when the system of internal control is known to be weak.

CConsideration of the possibility of material irregularities during every engagement.

DTesting in sufficient detail to give absolute assurance that noncompliance does not exist.

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Question: 2

A certified internal auditor performed an assurance engagement to review a department store's cash function. Which of the following actions will be deemed lacking in due professional care?

AOrganizational records were reviewed to determine whether all employees who handle cash receipts and disbursements were bonded.

BA flowchart of the entire cash function was developed, but only a sample of transactions was tested.

CThe final engagement communication included a well-supported recommendation for the reduction in staff, although it was known that such a reduction would adversely affect morale.

DBecause of a highly developed system of internal control over the cash function, the final engagement communication assured senior management that no irregularities existed.

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Question: 3

Criteria for employee evaluation are and applied to

AAveraged, performance on specific projects.

BWeighted; performance on all projects at one time.

CAveraged; performance on all projects at one time.

DWeighted; performance on specific projects.

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Question: 4

If an auditee's operating standards are vague and thus subject to interpretation, the auditor should

ASeek agreement with the auditee as to the standards to be used to measure operating performance.

BDetermine best practices in this area and use them as the standard.

CInterpret the standards in their strictest sense because standards are otherwise only minimum measures of acceptance.

DOmit any comments on standards and the auditee's performance in relationship to those standards because such an analysis would be meaningless.

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Question: 5

An internal auditor's objectivity could be compromised in all of the following situations except

AA conflict of interest.

BAn engagement client's familiarity with the internal auditor due to lack of rotation in assignments.

CThe internal auditor's assumption of operational duties on a temporary basis.

DReliance on an outside service provider when appropriate.

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IIA IIA-CIA-Part2 Quiz:156 Topic:5 Questions:776-780