IIA IIA-CIA-Part2 Quiz 73 Topic 7 Questions 361-365

Question: 1

The chief audit executive (CAE) notes that management has adopted the option of not taking action on an audit issue involving a sizeable risk which has been accepted in the past. Which would be an appropriate action by the CAE?

AClose the issue by noting that follow-up will be completed as part of the next engagement.

BDiscuss the matter with management to determine a resolution.

CAccept management's decision as the same risk has been accepted in the past.

DReport the situation to the board for immediate resolution.

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Question: 2

Which of the following would be a legitimate action for the internal auditor to take when monitoring audit engagement results?

1. Disregard a certain risk because management and the board accepted the risk in the past.

2. Abdicate the responsibility for a particular risk because it is not part of the audit plan.

3. Obtain agreement from senior management that unresolved audit issues will be reported to the board. Request corrective action from management in writing.

A1 and 3 only

B2 and 3 only

C3 and 4 only

D1, 2, and 4 only

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Question: 3

Controls are implemented to:

AEliminate risk and reduce the potential for loss.

BMitigate risk and eliminate the potential for loss.

CMitigate risk and reduce the potential for loss.

DEliminate risk and eliminate potential for loss.

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Question: 4

According to the Standards, which of the following should be the basis for scheduling follow-up of engagement recommendations?

AThe follow-up manual procedures.

BThe internal audit charter.

CThe agreement made between internal auditors and management.

DThe risks and exposures involved.

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Question: 5

Which of the following controls in a computerized consumer loan system of a major bank would be the least effective in detecting a fraudulent loan?

AAll log-in accounts become inaccessible after three incorrect password attempts.

BLoan approvals over a pre-determined limit must have management approval.

CCustomer information is matched to payment data prior to funds disbursement.

DSystem controls prevent supervisors from delegating their approval authority during vacation periods.

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IIA IIA-CIA-Part2 Quiz:73 Topic:7 Questions:361-365