IIA IIA-CIA-Part2 Quiz 63 Topic 8 Questions 311-315

Question: 1

The internal audit activity of an investment company received a request to provide assurance on the risk management process. Preliminary discussion with senior management revealed that separate functions within the organization perform some form of risk management activities. Which of the following is the most effective tool for ensuring that risk management activities are coordinated among these functions?

ADelphi technique.

BAssurance map.

CFacilitated workshop.

DAnalytical reviews.

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Question: 2

An internal auditor has been asked to participate in an advisory capacity to assist a committee in redesigning the organization's current financial reports to provide better information to management and the board. Which of the following actions on the part of the auditor would provide the greatest value to this project?

AThe internal auditor has a set of generic report templates from a former project and presents them to the group because they worked so well for the previous employer.

BThe internal auditor interviews each stakeholder and documents the requirements and preferences of each and creates a report template that meets as many of the requirements and preferences as possible.

CThe internal auditor gathers the stakeholder group and holds a brainstorming session where they generate report requirements and preferences and then rank them in order of importance.

DThe internal auditor undertakes a project to gather report templates and formats from other organizations in the same line of business and presents them all to the group for review.

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Question: 3

A payroll clerk enters payroll transactions into the general ledger. The staff accountant reconciles the payroll ledgers. The payroll manager issues the manual payroll checks. The checks are maintained in a locked cabinet. The chief financial officer secures the keys to the cabinet. The payroll clerk distributes the manual checks.

The payroll manager reconciles the bank statements monthly. Which of the following audit steps best addresses the risk of fraud in the payroll process?

AExamine whether the payroll manager approves the reconciliations of ledgers.

BDetermine whether an approved list of voided checks exists.

CDetermine whether the cabinet keys are secured properly.

DVouch a sample of items on bank reconciliations to supporting documentation.

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Question: 4

According to the International Professional Practices Framework, which of the following situations is an indicator of a healthy relationship between the audit committee and the internal audit function?

AThe chief audit executive (CAE) has direct access to the audit committee and the board but typically does not interact directly with them unless a material weakness in the control environment is identified.

BThe CAE sends the audit committee all communications between the internal audit department and the audit client in order to keep the audit committee up to date on the engagement.

CThe CAE does not distribute audit reports to the audit committee. However, the audit committee is made aware of the scope and findings of audits performed.

DWhenever a potential audit finding or testing exception is first identified, the audit committee is immediately notified, as well as for any subsequent changes in the status of the engagement.

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Question: 5

According to the Standards, which of the following would least likely be considered a red flag when evaluating the risk for fraud?

ACash receipts appear to be lower than expected from an employee's cash drawer.

BHealth benefits are detected to be claimed for a deceased employee.

CAn employee did not approve an internal report detailing expenses for the month.

DIt is alleged that an employee is receiving vendor kickbacks.

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IIA IIA-CIA-Part2 Quiz:63 Topic:8 Questions:311-315