IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 561:

  The efficiency of internal audit operations is best enhanced if workpaper standards:

  A. Permit the extent of documentation to vary according to engagement objectives.

  B. Require supervisors to initial and date each workpaper that they review.

  C. Allow access to workpapers by external parties if approved by senior management or the audit committee.

  D. Mandate the workpaper retention period.

  Correct Answer: A

• Question 562:

  According to the International Professional Practices Framework, which of the following statements is correct regarding the communication of audit results?

  I. Summary reports may be issued separately from or in conjunction with the final report.

  II. Interim reports may be written or oral.

  III. Detailed reports should always be issued to the audit committee.

  IV.

  Interim reports should be used to communicate information which requires immediate attention.

  A.

  I and III only

  B.

  II and IV only

  C.

  I, II, and IV only

  D.

  I, II, III, and IV.

  Correct Answer: C

• Question 563:

  Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?

  A. The number of customer inquiries recorded per day.

  B. The percentage of customer issues resolved within 24 hours.

  C. The number of customer complaints recorded per day.

  D. The percentage of total customers served per day.

  Correct Answer: B

• Question 564:

  Which of the following is true of engagement recommendations?

  I. Specific suggestions for implementation must be included.

  II. The internal auditor's observations and conclusions may serve as the basis.

  III. Actions to correct existing conditions or improve operations may be included.

  IV.

  Approaches to correcting or enhancing performance may be suggested.

  A.

  I only

  B.

  III only

  C.

  I, III, and IV only

  D.

  II, III, and IV only

  Correct Answer: D

• Question 565:

  An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:

  "A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted."

  The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor's workpaper?

  A. Use of audit verification symbols to show that each file was examined.

  B. Removal of the employee names to protect their confidentiality.

  C. Justification for the sample size.

  D. Listing of the actual documents examined for each employee.

  Correct Answer: C

• Question 566:

  During an interview with a manager in a company's claims department, an auditor noted that the manager became nervous and changed the subject whenever the auditor raised questions about certain types of claims. The manager's answers were consistent with company policies and procedures. When documenting the interview, the auditor should:

  A. Document the manager's answers, noting the nature of the nonverbal communication.

  B. Document the manager's answers but not the nonverbal communication because it is subjective and is not corroborated.

  C. Conclude that the nonverbal communication is persuasive and that sufficient evidence exists to begin a fraud investigation.

  D. Disregard the interview entirely because the verbal and nonverbal communications were contradictory.

  Correct Answer: A

• Question 567:

  Which of the following is an example of the verification of internal documentary evidence?

  A. Reviewing a carrier's bill of lading.

  B. Reconciling a vendor's month-end statement.

  C. Vouching a copy of a sales invoice to receivables.

  D. Recalculating a customer's purchase order.

  Correct Answer: C

• Question 568:

  The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?

  I. Financial measures.

  II. Internal business process measures.

  III. Client satisfaction measures.

  IV.

  Innovation and learning measures.

  A.

  I only

  B.

  II and IV only

  C.

  III and IV only

  D.

  II, III, and IV only

  Correct Answer: D

• Question 569:

  Productivity statistics are provided quarterly to a company's board of directors. An auditor checked the ratios and other statistics in the four most recent reports. The auditor used scratch paper and copies of the board reports to verify the accuracy of computations and compared the data used in the computations with supporting documents. The auditor wrote a note describing this work for the workpapers and then discarded the scratch paper and report copies. The auditor's note stated.

  "The ratios and other statistics in the quarterly board reports were checked for the last four quarters, and appropriate supporting documents were examined. All amounts appear to be appropriate."

  In this situation:

  A. Four quarters is not a large enough sample on which to base a conclusion.

  B. The auditor's workpapers are not sufficient to facilitate an efficient review of the auditor's work.

  C. The auditor should have included the scratch paper in the workpapers.

  D. The auditor should have considered whether the information in the board report was compiled efficiently.

  Correct Answer: B

• Question 570:

  When conducting research, which of the following is most important?

  A. Using computer databases or the Internet to find all relevant sources.

  B. Providing documentation of the reference sources.

  C. Presenting only those facts that support the conclusion.

  D. Presenting all contrary views to balance the opinion.

  Correct Answer: B