IIA IIA-CIA-Part3 Quiz 37 Topic 7 Questions 181-185

Question: 1

A chief audit executive (CAE) was asked to participate in the selection of an external auditor. Which of the following would not be a typical responsibility for the CAE?

AEvaluate the proposed external auditor fee.

BRecommend criteria to be used in the selection process.

CDevelop appropriate performance metrics.

DMonitor the work of the external auditors.

Show Answer

Question: 2

Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?

AA flexible budget.

BVariance analysis.

CA contribution margin income statement by segment.

DResidual income.

Show Answer

Question: 3

An organization uses a database management system (DBMS) as a repository for dat

a. The DBMS, in turn, supports a number of end-user developed applications which were created using fourth-generation programming languages. Some of the applications update the database. Which of the following is the most important control related to the integrity of the data in the database?

AEnd users have their read-only applications approved by the information systems department before accessing the database.

BConcurrency update controls are in place.

CEnd-user applications are developed on personal computers before being implemented on the
mainframe.

DA hierarchical database model is adopted so that multiple users can be served at the same time.

Show Answer

Question: 4

Which of the following statements is correct regarding risk analysis?

AThe extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.

BThe highest risk assessment should always be assigned to the area with the largest potential loss.

CThe highest risk assessment should always be assigned to the area with the highest probability of
occurrence.

DRisk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.

Show Answer

Question: 5

Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?

AIncreasing complexity over time.

BInterface with corporate systems.

CAbility to meet user needs.

DHidden data columns or worksheets.

Show Answer

IIA IIA-CIA-Part3 Quiz:37 Topic:7 Questions:181-185