IIA IIA Certifications IIA-CIA-PART2 Questions & Answers

• Question 581:

  Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?

  A. Productivity ratio.

  B. Productivity index.

  C. Operating ratio.

  D. Resource utilization rate.

  Correct Answer: C

• Question 582:

  During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts.

  Which of the following would most likely be the reason for the high volume of complaints?

  A. An ineffective customer service department.

  B. Poor controls in the invoice approval processes.

  C. Check tampering by an employee.

  D. Submission of fraudulent expense reports.

  Correct Answer: C

• Question 583:

  In order to effectively elicit sensitive information from an employee during an audit engagement, an auditor should:

  A. Tell the employee a piece of information obtained from a coworker in a previous interview.

  B. Put sensitive questions at the beginning of a questionnaire to ensure that they are answered.

  C. Explain that the auditor's reputation for integrity, which is vital to the auditor's business success, would be seriously damaged if confidentiality were breached.

  D. Point out that management has given the auditor full authority to conduct this interview.

  Correct Answer: C

• Question 584:

  Which of the following is the best problem-solving technique to use when analyzing performance and cost?

  A. Value analysis.

  B. Attribute listing.

  C. Brainstorming.

  D. Component analysis.

  Correct Answer: A

• Question 585:

  Company A has a formal comprehensive corporate code of ethics while company B does not.

  Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?

  I. Company A exhibits a higher standard of ethical behavior than does company B.

  II. Company A has established objective criteria by which an employee's actions can be evaluated.

  III. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.

  A. II only

  B. III only

  C. I and II only

  D. II and III only

  Correct Answer: A

• Question 586:

  Which of the following files, when compared with billing records, would provide the best source of information for determining if all goods shipped are billed to customers?

  A. Pre-numbered customer invoices.

  B. Accounts receivable transactions.

  C. Pre-numbered shipping documents.

  D. Customer purchase orders.

  Correct Answer: C

• Question 587:

  An auditor plans to analyze customer satisfaction, including: (1) customer complaints recorded by the customer service department during the last three months; (2) merchandise returned in the last three months; and (3) responses to a survey of customers who made purchases in the last three months. Which of the following statements regarding this audit approach is correct?

  A. Although useful, such an analysis does not address any risk factors.

  B. The survey would not consider customers who did not make purchases in the last three months.

  C. Steps 1 and 2 of the analysis are not necessary or cost-effective if the customer survey is comprehensive.

  D. Analysis of three months' activity would not evaluate customer satisfaction.

  Correct Answer: B

• Question 588:

  A company's policy requires that all customers be treated in a fair and consistent manner. Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?

  A. Compare the aging of outstanding receivables due from each customer.

  B. Compare credit reports with annual sales for a sample of customers.

  C. Compare the ratio of outstanding receivables to the authorized credit limit for each customer.

  D. Compare the sales discounts offered to each customer.

  Correct Answer: D

• Question 589:

  Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?

  A. Vendor fuel invoices that have been reconciled to inventory records.

  B. Time cards completed by aircraft cleaning and fueling crews.

  C. Observation of selected aircraft while they are being refueled and cleaned.

  D. Comparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.

  Correct Answer: C

• Question 590:

  Which of the following would be most helpful to a governmental auditor searching for the existence of multiple welfare claims that were filed under different names but used the same address?

  A. Tagging and tracing.

  B. Generalized audit software.

  C. Integrated test facility.

  D. Spreadsheet analysis.

  Correct Answer: B