IIA IIA-CIA-Part2 Quiz 28 Topic 6 Questions 136-140

Question: 1

A chief audit executive (CAE) of a major retailer has engaged an independent firm of information security specialists to perform specialized internal audit activities. The CAE can rely on the specialists' work only if it is:

APerformed in accordance with the terms of the contract.

BCarried out in accordance with the Standards.

CPerformed under the supervision of the information technology department.

DCarried out using standard review procedures for retailers.

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Question: 2

The scope of a consulting engagement performed by internal auditors should:

ABe sufficient to address the objectives agreed upon with the client.

BExclude areas that might be the subject of subsequent assurance engagements.

CBe limited to activities within the current operating period.

DBe preapproved in conjunction with the annual plan of consulting engagements.

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Question: 3

A chief audit executive (CAE) suspects that several employees have used desktop computers for personal gain. In conducting an investigation, the primary reason that the CAE would choose to engage a forensic information systems auditor rather than using the organization's information systems auditor is that a forensic information systems auditor would possess:

AKnowledge of the computing system that would enable a more comprehensive assessment of the computer use and abuse.

BKnowledge of what constitutes evidence acceptable in a court of law.

CSuperior analytical skills that would facilitate the identification of computer abuse.

DSuperior documentation and organization skills that would facilitate in the presentation of findings to senior management and the board.

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Question: 4

While conducting a payroll audit, an internal auditor in a large government organization found inadequate segregation in the duties assigned to the assistant director of personnel. When the auditor explained the risk of fraud, the assistant director became upset, terminated the interview, and threatened to sue the organization for defamation of character if the audit engagement was not curtailed. The auditor discussed the situation with the chief audit executive (CAE). The CAE should then:

ACurtail the audit engagement to avoid potential legal action.

BProvide a report to senior management recommending a fraud investigation.

CContinue the original engagement program as planned but include a comment about the assistant director's reaction in the engagement final communication.

DAdd additional testing to determine whether other indicators of fraud exist.

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Question: 5

Which of the following is the most appropriate step for the chief audit executive to take in order to avoid defamation of character of the principal suspect in a fraud investigation?

ARestrict the use of potentially damaging words to privileged reports or discussions.

BLabel all workpapers, reports, and correspondence of the internal audit activity as private.

CRestrict discussions of the fraud to members of management who express an interest in the investigation.

DDestroy all investigation workpapers and reports if the fraud cannot be proven.

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IIA IIA-CIA-Part2 Quiz:28 Topic:6 Questions:136-140