IIA IIA-CIA-Part2 Quiz 223 Topic 7 Questions 1111-1115

Question: 1

An audit of a company's accounts payable found that the individuals responsible for maintaining the vendor master file could also enter vendor invoices into the accounts payable system. During the exit conference, management agreed to correct this problem. When performing a follow-up engagement of accounts payable, the auditor should expect to find that management has

ATransferred the individuals who maintained the vendor master file to another department to ensure that responsibilities are appropriately segregated.

BCompared the vendor and employee master files to determine if any unauthorized vendors have been added to the vendor master file.

CChanged the access control system to prevent employees from both entering invoices and approving payments.

DModified the accounts payable system to prevent individuals who maintain the vendor master file from entering invoices.

Show Answer

Question: 2

What is the primary factor that determines the depth and breadth of audit followup?

AThe engagement client's written response to the audit findings.

BThe auditor's assessment of risk associated with the audit findings.

CThe auditor's assessment of personnel responsible for correcting audit findings.

DThe availability of audit personnel and financial resources.

Show Answer

Question: 3

Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a followup of audit recommendations when developing engagement work schedules. Does the CAE's decision violate the Standards?

ANo, because the Standards do not specify whether followup is needed.

BNo, because when there is evidence of sufficient motivation by the client, there is no need for followup action.

CYes, because scarcity of resources is not a sufficient reason to omit followup action.

DYes, because the Standards require the auditors to determine whether the client has appropriately implemented all of the auditor's recommendations.

Show Answer

Question: 4

At the conclusion of an audit of an organization's treasury department, a report was issued to the treasurer, chief financial officer, president, and board. Because of the sensitivity of some findings, a followup review was performed. The auditor should provide the report of followup findings to the

i. Treasurer.

ii. Chief financial officer.

iii. President.

IV. Board.

AI and II only.

BIII and IV only.

CI, II, and III only.

DI, II, III, and IV.

Show Answer

Question: 5

Questions used to interrogate individuals suspected of fraud should

AAdhere to a predetermined order.

BCover more than one subject or topic.

CMove from general to specific.

DDirect the individual to a desired answer.

Show Answer

IIA IIA-CIA-Part2 Quiz:223 Topic:7 Questions:1111-1115