IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 471:

  Which of the following is the most appropriate step for the chief audit executive to take in order to avoid defamation of character of the principal suspect in a fraud investigation?

  A. Restrict the use of potentially damaging words to privileged reports or discussions.

  B. Label all workpapers, reports, and correspondence of the internal audit activity as private.

  C. Restrict discussions of the fraud to members of management who express an interest in the investigation.

  D. Destroy all investigation workpapers and reports if the fraud cannot be proven.

  Correct Answer: A

• Question 472:

  A chief audit executive (CAE) suspects that several employees have used desktop computers for personal gain. In conducting an investigation, the primary reason that the CAE would choose to engage a forensic information systems auditor rather than using the organization's information systems auditor is that a forensic information systems auditor would possess:

  A. Knowledge of the computing system that would enable a more comprehensive assessment of the computer use and abuse.

  B. Knowledge of what constitutes evidence acceptable in a court of law.

  C. Superior analytical skills that would facilitate the identification of computer abuse.

  D. Superior documentation and organization skills that would facilitate in the presentation of findings to senior management and the board.

  Correct Answer: B

• Question 473:

  While conducting a payroll audit, an internal auditor in a large government organization found inadequate segregation in the duties assigned to the assistant director of personnel. When the auditor explained the risk of fraud, the assistant director became upset, terminated the interview, and threatened to sue the organization for defamation of character if the audit engagement was not curtailed. The auditor discussed the situation with the chief audit executive (CAE). The CAE should then:

  A. Curtail the audit engagement to avoid potential legal action.

  B. Provide a report to senior management recommending a fraud investigation.

  C. Continue the original engagement program as planned but include a comment about the assistant director's reaction in the engagement final communication.

  D. Add additional testing to determine whether other indicators of fraud exist.

  Correct Answer: D

• Question 474:

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

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

  B. Start the interview with questions to which the interviewer already knows the answer.

  C. Discontinue questioning once the individual has confessed to the fraud.

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

  Correct Answer: B

• Question 475:

  A. Adhere to a predetermined order.

  B. Cover more than one subject or topic.

  C. Move from general to specific.

  D. Direct the individual to a desired answer.

  Correct Answer: C

• Question 476:

  What is the primary factor that determines the depth and breadth of audit follow-up?

  A. The engagement client's written response to the audit findings.

  B. The auditor's assessment of risk associated with the audit findings.

  C. The auditor's assessment of personnel responsible for correcting audit findings.

  D. The availability of audit personnel and financial resources.

  Correct Answer: B

• Question 477:

  At the conclusion of an audit of an organization's treasury department, a report was issued to the treasurer, chief financial officer, president, and board. Because of the sensitivity of some findings, a follow-up review was performed. The auditor should provide the report of follow-up findings to the:

  I. Treasurer.

  II. Chief financial officer.

  III. President.

  IV.

  Board.

  A.

  I and II only

  B.

  III and IV only

  C.

  I, II, and III only

  D.

  I, II, III, and IV.

  Correct Answer: D

• Question 478:

  An auditor decides to vouch a sample of ledger entries back to their original documentation. In terms of whether all transactions had been recorded, this test would be:

  A. Relevant to the completeness objective.

  B. Irrelevant to the completeness objective.

  C. A more timely test of completeness than evidence from interviews.

  D. A more biased test of completeness than evidence from interviews.

  Correct Answer: B

• Question 479:

  All of the following tools are employed to control large-scale projects except:

  A. Program evaluation and review technique (PERT).

  B. Critical path method.

  C. Statistical process control.

  D. Gantt charts.

  Correct Answer: C

• Question 480:

  An audit of an organization's claims department determined that a large number of duplicate payments had been issued due to problems in the claims processing system. During the exit conference, the vice president of the claims department informed the auditors that attempts to recover the duplicate payments would be initiated immediately and that the claims processing system would be enhanced within six months to correct the problems. Based on this response, the chief audit executive should:

  A. Adjust the scope of the next regularly scheduled audit to assess controls within the claims processing system.

  B. Discuss the findings with the audit committee and ask the committee to determine the appropriate follow-up action.

  C. Schedule a follow-up engagement within six months to assess the status of corrective action.

  D. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.

  Correct Answer: D