IIA-CIA-Part2 V3

According to an internal audit observation, the organization’s rules of record management require all contracts to be registered and stored in a specific electronic system. One subsidiary has thousands of client contracts on paper, which are kept in the office because there are not enough assistants to scan the contracts...

An internal auditor suspects that employee turnover is unusually high at the organization's primary manufacturing plant. To investigate this potential issue which of the following analytical approaches is the auditor likely to use?A . Ratio analysisB . Vertical analysisC . BenchmarkingD . Cost-benefit analysis.View AnswerAnswer: C

An internal auditor is assigned to validate calculations on the organization's building application As pad of the test the internal auditor is required to use an automated audit tool to simulate transactions for testing. Which of the following would most appropriately be used for this purpose?A . Generalized audit software.B...

According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?A . The organization's audit universe is extensive and diverse.B . There has been an increase in unanticipated requests for advisory work.C . Previous work...

The IAA frequently is involved in various project teams and task forces in an advisory capacity.A . 1 and 2B . 1 and 3C . 2 and 4D . 3 and 4View AnswerAnswer: D

Which of the following is an appropriate documentation of proper engagement supervision?A . A completed engagement workpaper review checklist.B . The supervisor's review notes on engagement workpapers.C . The email exchanges between the audit team and the supervisor.D . A supervisor's approval of resources allocated to the engagementView AnswerAnswer: B

Determine how the information is stored.A . 1 and 3 onlyB . 2 and 4 onlyC . 1, 3, and 4 onlyD . 1, 2, 3, and 4View AnswerAnswer: D

According to HA guidance, the chief audit executive is directly responsible for which of the following?A . Maintaining a quality assurance program even in the absence of management supportB . Periodically reviewing and approving the internal audit charierC . Providing opportunities for all staff auditors to satisfy their professional development...

Third-party opinion.A . 1 and 3B . 1 and 4C . 2 and 3D . 2 and 4View AnswerAnswer: C

An audit observation states the following: "Despite the rules of the organization there is no approved credit risk management policy in the subsidiary. The subsidiary is concluding contacts with clients who have very high credit ratings. The internal audit team tested 50 contacts and 17 showed clients with a poor...