IIA IIA-CIA-Part2 Quiz 208 Topic 9 Questions 1036-1040

Question: 1

Which of the following factors should be considered in determining the timing, nature, and extent of followup procedures?

i. The significance of the audit observation.

ii. The time, effort, and cost needed to correct the reported condition.

iii. The complexity of the corrective action.

IV. The potential consequences if the corrective action fails.

AI and IV only.

BII and III only.

CI, II, and III only.

DI, II, III, and IV.

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Question: 2

A warehouse manager for a supply company stated that products are shipped on a timely basis. During a preliminary walk through, an internal auditor observes some instances of delayed shipping. What can the auditor logically conclude from this contradictory information?

AThe warehouse manager does not understand the operations.

BThe auditor's observations were not representative of the population.

CInternal controls over customer orders are weak.

DAdditional information is needed before a conclusion can be drawn.

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Question: 3

During an audit of a manufacturing facility, an internal auditor noted violations of regulations related to the disposal of hazardous chemicals. The most appropriate action for the auditor to take would be to

AIssue a written report to the committee that oversees regulatory compliance issues.

BOmit the finding in the written audit report, but orally request that facility management change procedures to appropriately dispose of the chemicals.

CAnonymously report the finding via the organization's compliance hot line.

DConsult with legal counsel regarding an appropriate course of action before reporting the finding.

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Question: 4

An anonymous party contacted an organization's fraud hotline and reported that the chief executive officer (CEO) and chief financial officer (CFO) were manipulating financial reserve accounts in order to achieve publicly disclosed earnings targets. All reports to the fraud hotline go directly to the entity's chief audit executive (CAE). Based on a preliminary evaluation of the report, the CAE concluded that the allegations were credible. Which of the following is the most appropriate course of action for the CAE to take?

AContact the audit committee chairperson and request that an investigation be initiated by an outside party.

BDiscuss the allegations with the entity's chief legal officer to determine if criminal charges should be filed against the CEO and CFO.

CDiscuss the situation with the CEO and CFO because they are within the CAE's normal chain of command.

DNotify outside regulatory authorities that oversee financial reporting matters.

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Question: 5

When reviewing a report prepared by an internal auditor who has a personal friend employed in the area being audited, a chief audit executive's primary focus would be to ensure that the report

AIs fair, impartial, and unbiased.

BIs easily understood and findings are presented in a logical manner.

CIs clearly worded and avoids unnecessary detail, redundancy, and wordiness.

DIs free from errors and misstatements.

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IIA IIA-CIA-Part2 Quiz:208 Topic:9 Questions:1036-1040