IIA IIA-CIA-Part2 Quiz 104 Topic 6 Questions 516-520

Question: 1

An organization establishes compliance standards and procedures and develops a written business code of conduct to be followed by its employees. Which of the following is true concerning business codes of conduct and the compliance standards?

ACompliance standards should be straightforward and reasonably capable of reducing the prospect of criminal conduct.

BThe compliance standards should be codified in the charter of the audit committee.

CCompanies with international operations should institute various compliance
programs, based on selective geographic locations, that reflect appropriate local regulations.

DIn order to prevent future legal liability, the code should consist of legal terms and definitions.

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Question: 2

The internal auditors randomly select participants in the job retraining program for the past year to verify that they had met all the eligibility requirements. This type of engagement is concerned with

ACompliance.

BOperational effectiveness.

CEconomy and efficiency.

DProgram results.

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Question: 3

The chief audit executive plans an engagement to verify that the job retraining program complies with applicable grant provisions. One of the provisions is that the city adopt a budget for the program and subsequently follow procedures to ensure that the budget is adhered to and that only allowable costs are charged to the program. In performing an engagement concerning compliance with this provision, the internal auditors should perform all of the following procedures except

ADetermine that the budget was reviewed and approved by supervisory personnel within the city.

BDetermine that the budget was reviewed and approved by supervisory personnel within the granting agency.

CSelect a sample of expenditures to determine that the expenditures are (1) properly classified as to type, (2) appropriate to the program, and (3) designed to meet the program's objectives.

DCompare actual results with budgeted results and determine the reason for deviations. Determine if such deviations have been approved by appropriate officials.

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Question: 4

The internal auditors must determine the applicable laws and regulations. Which of the following procedures is the (east effective in learning about the applicable laws and regulations?

AMake inquiries of the city's chief financial officer, legal counsel, or grant administrators.

BReview prior-year working papers and inquire of officials as to changes.

CReview applicable grant agreements.

DDiscuss the matter with the board and make inquiries as to the nature of the requirements and the board's objectives for the engagement.

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Question: 5

Which organization is least likely to have a good compliance environment?

AAn international organization that creates a global compliance program that reflects local conditions, laws, and regulations.

BAn organization that creates an organizational chart, identifying personnel who are responsible for implementing compliance programs.

CAn organization whose code of conduct provides guidance to employees on relevant issues.

DAn organization that rewards employees for charging travel hours to take advantage of the tax benefits.

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IIA IIA-CIA-Part2 Quiz:104 Topic:6 Questions:516-520