IIA-CIA-Part2 exam

New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information...

Which of the following is a weakness that is inherent in the use of the test data method to test internal controls in a computer-based accounting system?A . The auditor must test many transactions with the same condition in order to achieve assurance that the condition is being detected.B ....

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...

Which of the following would be an appropriate improvement to controls over large quantities of consumable material that are charged to expense when placed in bins which are accessible to production workers?A . Relocate bins to the inventory warehouse.B . Require management to compare the cost of consumable items used...

An auditor for a major retail company suspects that inventory fraud is occurring at three stores which have high costs of goods sold. Which of the following audit activities would provide the most persuasive evidence that fraud is occurring?A . Use an integrated test facility (ITF) to compare individual sales...

Which of the following situations would best support the decision of a chief audit executive (CAE) to defer follow-up activity at a branch office until the next audit engagement?A . An audit of the branch office is routinely scheduled every three years.B . On-site follow-up of a remote branch may...

What is the most important risk in determining the validity of construction delay claims?A . Contractor claims may be submitted prior to completion of the work.B . Contractor claims may include costs considered in the fixed-price portion of the work.C . Contractor claims may include subcontractor estimates of balances due...

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.View AnswerAnswer: C

Which of the following processes real-transaction data through auditor-developed test programs?A . Generalized audit software.B . Tracing.C . Parallel simul-ation.D . Mapping.View AnswerAnswer: C

An internal auditor is discussing an audit problem with an engagement client. While listening to the client, the internal auditor should:A . Prepare a response to the client.B . Take mental notes on the speaker's nonverbal communication, as it is more important than what is being said.C . Make sure...