IIA IIA-CIA-Part2 Quiz 229 Topic 9 Questions 1141-1145

Question: 1

According to IIA guidance which of the following statements is true regarding the annual audit plan?

AThe annual audit plan should only be adjusted in response to problems with resourcing, scope, and data availability.

BThe chief audit executive (CAE) may incorporate risk information, including risk appetite levels from management for the audit plan at her discretion.

CIn an immature risk management environment it is preferable for the CAE to rely solely on her judgment regarding risk identification and assessment to develop the audit plan.

DThe CAE may make adjustments to the annual audit plan as needed without senior management or board approval.

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Question: 2

An employee in the sales department completes a purchase requisition and forwards it to the purchaser. The purchaser places competitive bids and orders the requested items using approved purchase orders. When the employee receives the ordered items, she forwards the packing slips to the accounts payable department. The invoice for the ordered items is sent directly to the sales department, and an administrative assistant in the sales department forwards the invoices to the accounts payable department for payment. Which of the following audit steps best addresses the risk of fraud in the cash receipts process?

AVerify that approvals of purchasing documents comply with the authority matrix.

BObserve whether the purchase orders are sequentially numbered.

CExamine whether the sales department supervisor approves invoices for payment.

DDetermine whether the accounts payable department reconciles all purchasing documents prior to payment.

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Question: 3

When presenting an observation m writing which or the Mowing is usually true regarding the level of detail provided?

1. The description of the observation in the final audit report contains more detail then the description m the engagement workpapers

2. The description of the observation m the engagement workpapers contains more detail than the descriptor n a preliminary observation document

3. A preliminary observation document contains more detail than tie observation description in the final audit report

4. A preliminary observation document contains more detail than tie observation description in the engagement workpapers

A1 and 2

B1 and 4

C2 and3

D3 and 4

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Question: 4

An auditor, assigned to review a complex computer system that had undergone a few system changes, obtained the prior flowchart used. Which of the following would be the most efficient way to document the changes?

ACreate a new flowchart reflecting the system changes.

BPrepare a detailed narrative instead of a flowchart to describe the updated system.

CAdd a detailed narrative to the prior flowchart to describe the changes to the system.

DMake the necessary adjustments on a copy of the prior flowchart and save as a new version.

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Question: 5

When interrogating an individual who is suspected of fraud, it is appropriate to

ATell the individual that any information disclosed in the interrogation will not be disclosed outside of the company.

BStart the interview with questions to which the interviewer already knows the answer.

CDiscontinue questioning once the individual has confessed to the fraud.

DPrepare a list of questions prior to the interrogation and strictly adhere to the list.

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IIA IIA-CIA-Part2 Quiz:229 Topic:9 Questions:1141-1145