IIA IIA-CIA-Part2 Quiz 186 Topic 9 Questions 926-930

Question: 1

An internal audit activity is conducting an engagement to evaluate the payroll and accounts receivable departments. Significant problems related to the approval of overtime have been noted. While the engagement is still in process, which of the following engagement communications is appropriate?

AA summary communication.

BA final written communication.

CA questionnaire-type communication.

DAn oral communication.

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Question: 2

A relatively new internal auditor is completing a final engagement communication. The communication should most appropriately be signed by the

AInternal auditor because of a greater level of detailed knowledge of the report.

BInternal auditor and the manager of the activity under review to indicate that they concur with the report.

CChief audit executive.

DChair of the audit committee.

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Question: 3

Which of the following is the most appropriate method of reporting disagreement between the internal auditor and the engagement client concerning engagement observations and recommendations?

AState the internal auditor's position because the report is designed to provide the internal auditor's independent view.

BState the engagement client's position because management is ultimately responsible for the activities reported.

CState both positions and identify the reasons for the disagreement.

DState neither position. If the disagreement is ultimately resolved, there will be no reason to report the previous disagreement. If the disagreement is never resolved, the disagreement should not be reported because there is no mechanism to resolve it.

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Question: 4

According to the Standards, when should a signed report be issued?

AWhenever an opinion is expressed.

BAt the conclusion of an engagement.

CAt predetermined stages as the engagement progresses.

DOnly if required by the particular engagement.

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Question: 5

An internal auditor is preparing a final engagement communication to management. However, the internal auditor and the engagement client disagree about one observation that describes the client's violation of the organization's purchasing policy. The client believes the purchasing policy is open to interpretation and that no violation occurred. The internal auditor believes that the policy is clearly stated and that the client's actions were a violation. In this circumstance, the internal auditor should

ADelete the observation from the report.

BPresent only those facts that support the observation and ignore those that detract from it.

CPresent the internal auditor's and client's positions in the report.

DNot issue the report until the internal auditor and client agree on all observations and recommendations.

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IIA IIA-CIA-Part2 Quiz:186 Topic:9 Questions:926-930