IIA IIA-CIA-Part2 Quiz 51 Topic 6 Questions 251-255

Question: 1

Audit supervision includes approval of the engagement report in order to ensure that:

AThe client's objectives are met.

BSenior management supports the report's conclusions.

CReport style and grammar are appropriate.

DReport findings are substantiated.

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Question: 2

Cross-referencing individual payroll time cards to personnel department records and reports would allow an internal auditor to determine whether:

AIndividuals are bona fide employees.

BPersonnel department records agree with payroll accounting records.

CIndividuals were paid at the proper rates.

DIndividuals were paid only for time worked.

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Question: 3

After becoming aware of control weaknesses indicating that a fraud could have been committed, which of the following actions should an internal auditor take next?

AIssue a written report identifying the control weaknesses.

BPerform tests directed toward the identification of other fraud indicators.

CNotify external auditors of the suspicion that fraud has been committed.

DRecommend that a fraud investigation be conducted involving internal auditors, lawyers, investigators, security personnel, and other specialists, as appropriate.

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Question: 4

An internal auditor noticed that employees with responsibilities for cash collection had recently issued an unusually large number of credit memos, indicating that the original charges had been made to the wrong customer accounts. From a control standpoint, the auditor would be concerned with the possibility that:

AThe organization is selling a large number of defective items.

BEmployees in this function are concealing a theft of cash collected from customers.

CCredit memos are not being submitted on a timely basis.

DThe credit department has not been properly screening customers and, as a result, a large portion of the accounts receivable may not be collectible.

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Question: 5

During an audit of a contract for computer security, a governmental auditor finds that a contractor has developed a system that could be the most advanced in the industry. If it seems that the contractor is charging the government for developmental cost of a system that might be sold to other organizations, what is the auditor's best course of action?

AEstimate the cost to develop the advanced security system and inform the contractor that it will be a disallowed cost.

BExclude the observation from the engagement final communication because the contract was vague and the level of security is clearly acceptable.

CEstimate the added cost, report it to management, and suggest that management meet with its lawyers and the contractor to resolve differences.

DCompare the cost of the security program with previous costs incurred by governmental operations and inform the contractor that the difference will be a disallowed cost.

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IIA IIA-CIA-Part2 Quiz:51 Topic:6 Questions:251-255