IIA IIA-CIA-Part2 Quiz 34 Topic 9 Questions 166-170

Question: 1

During an audit of a major metropolitan museum, an auditor was unable to locate selected items from the museum's collection. The director of the museum informed the auditor that the upcoming replacement of the museum's inventory tracking system would address the auditor's concerns. What follow-up activity should the auditor propose?

AReceive periodic feedback from museum staff regarding the status of the system implementation.

BMonitor the system implementation and schedule a follow-up review once the new system is in place.

CDetermine whether the items are indeed missing and assess the ability of the new system to remedy the problem.

DSchedule an audit of the museum's security systems to determine if theft is a problem.

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Question: 2

In response to an accounts receivable confirmation, a customer indicated that the invoice listed on the confirmation letter had been paid two months earlier.

This may indicate that:

AThe receivable was selected for confirmation in error.

BThe customer is a bad credit risk.

CThe receivable should be written off.

DFraudulent activity has occurred.

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Question: 3

Which of the following conclusions would be appropriate for a beginning auditor performing an audit of a payroll department?

AEmployee taxes have been deducted at the correct rates, and the taxes have been forwarded to the appropriate government agency.

BAlthough there is insufficient segregation of duties, the impact is mitigated by compensating controls.

CThe payroll computer system should be replaced.

DThe payroll department staff has the appropriate level of skills.

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Question: 4

An audit of customer accounts receivable found that outstanding receivables as a percentage of revenue had increased significantly during the past two years. The increase was attributed to the extension of credit, at the urging of the marketing department, to a number of companies that were not creditworthy. Which of the following would be least useful in monitoring the disposition of this finding?

AResponses from the manager of accounts receivable regarding collection of outstanding receivables.

BPeriodic updates from the controller regarding the status of corrective actions.

CInformation from the credit and marketing personnel assigned the responsibility for reevaluating credit policies.

DUpdates from the information technology division regarding implementation of a new accounts receivable system.

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Question: 5

In a client satisfaction survey for an internal audit engagement, client management should be asked to assess which of the following factors?

1. Audit team's knowledge of the audited area.

2. Usefulness of the audit results.

3. Quality of management of the internal audit activity.

4. Clarity of the scope and objectives of the audit engagement.

AI and II only

BII and IV only

CI, II, and IV only

DI, III, and IV only

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IIA IIA-CIA-Part2 Quiz:34 Topic:9 Questions:166-170