IIA IIA-CIA-Part2 Quiz 54 Topic 6 Questions 266-270

Question: 1

During an engagement, an internal auditor discovered that an organization's policy on delegation of authority listed six individuals who were no longer employed with the organization. In addition, four individuals acting with disbursement authority were not identified in the policy as having such authority. Which of the following is the most effective course of action to address the control weakness?

AImmediately initiate a complete audit of the disbursement function to determine if significant frauds have occurred.

BRecommend that management review the process supporting the policy and make improvements.

CAdvise management to add the four additional names and remove the incorrect names from the policy to make it current.

DReview further to ensure that the four individuals do not have the appropriate authority through delegation.

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Question: 2

According to the International Professional Practices Framework, which of the following statements is true regarding the use of the statement, 'Conducted in Conformance with the International Standards for the Professional Practice of Internal Auditing,' when communicating results of a seven-year-old internal audit activity?

AThe statement may be used only when conducting international engagements.

BThe statement may be used only if the results of the quality assurance and improvement program support the statement.

CThe statement may be used whether or not the internal audit department has an external quality assessment review or an independent validation of a self assessment.

DThe statement should not be used for a consulting engagement.

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Question: 3

With which of the following would the internal audit activity discuss findings, conclusions and recommendations prior to issuance of internal audit report?

1. Business unit management.

2. Chief audit executive.

3. Audit committee.

4. Chief executive officer.

A1 and 2 only

B1 and 3 only

C2 and 3 only

D1, 2, 3, and 4

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Question: 4

When determining the nature, timing, and extent of follow up, the chief audit executive considers all of the following factors except:

ASignificance of the reported observation or recommendation, degree of effort, and cost needed to correct the reported condition.

BImpact that may result should the corrective action fail.

CAuthority and responsibility of the person required to take corrective action.

DComplexity of the corrective action and time period involved.

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Question: 5

According to the Standards, which of the following describes the condition attribute when applied to the observations and recommendations contained in the audit report?

AThe standards, measures, or expectations used in making an evaluation or verification.

BThe reason for the difference between the expected state and the actual state.

CThe factual evidence that the internal auditor found in the course of the examination.

DThe risk or exposure the organization encounters because the actual state is not consistent with the criteria.

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IIA IIA-CIA-Part2 Quiz:54 Topic:6 Questions:266-270