IIA IIA-CIA-Part2 Quiz 26 Topic 7 Questions 126-130

Question: 1

An audit of an organization's claims department determined that a large number of duplicate payments had been issued due to problems in the claims processing system. During the exit conference, the vice president of the claims department informed the auditors that attempts to recover the duplicate payments would be initiated immediately and that the claims processing system would be enhanced within six months to correct the problems. Based on this response, the chief audit executive should:

AAdjust the scope of the next regularly scheduled audit to assess controls within the claims processing system.

BDiscuss the findings with the audit committee and ask the committee to determine the appropriate follow-up action.

CSchedule a follow-up engagement within six months to assess the status of corrective action.

DMonitor the status of corrective action and schedule a follow-up engagement when appropriate.

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Question: 2

All of the following tools are employed to control large-scale projects except:

AProgram evaluation and review technique (PERT).

BCritical path method.

CStatistical process control.

DGantt charts.

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Question: 3

An auditor decides to vouch a sample of ledger entries back to their original documentation. In terms of whether all transactions had been recorded, this test would bE.

ARelevant to the completeness objective.

BIrrelevant to the completeness objective.

CA more timely test of completeness than evidence from interviews.

DA more biased test of completeness than evidence from interviews.

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Question: 4

Which of the following would not be characteristic of control self-assessment implemented by an audit department?

AAn auditor usually facilitates the discussion during the workshop phase while another records comments for subsequent use.

BAuditors and business-unit employees work as a team.

CAuditors perform traditional audit tests to identify control weaknesses.

DParticipants discuss the control weaknesses that hinder the achievement of objectives.

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Question: 5

Which of the following is an advantage of control self-assessment (CSA) over conventional auditing techniques?

ACSA evaluates control activities and human resource practices.

BCSA provides assurance about whether business objectives will be met.

CCSA facilitates obtaining input from subject-matter experts efficiently.

DCSA provides assurance that action will be taken to improve deficiencies.

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IIA IIA-CIA-Part2 Quiz:26 Topic:7 Questions:126-130