IIA-CIA-Part2 exam

An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau. What action should the auditor take, considering the outsourcing decision?A . Review the controls over payroll in both the company and the service bureau.B . Review only the...

Which of the following does not represent a difficulty in using red flags as fraud indicators?A . Many common red flags are also associated with situations where no fraud exists.B . Some red flags are difficult to quantify or to evaluate.C . Red flag information is only gathered in extraordinary...

Which of the following describes an internal auditor's responsibilities to include audit procedures to detect fraud in audits of a multinational organization?A . International Accounting Standards require the internal auditor to include audit procedures which would detect fraud if it would cause a material misrepresentation of the financial statements.B ....

In which of the following situations would it be most appropriate to employ the services of a forensic specialist?A . Detection of unauthorized changes to source documents.B . Review for misapplication of general computer controls over accounts receivable.C . Investigation of ghost employees in a large business.D . Verification of...

During an audit of a branch bank, an internal auditor learned that a series of system failures had resulted in a four-day delay in processing customers' scheduled payroll direct deposits. The first failure was that of a disk drive, followed by software and other minor failures. Which of the following...

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....

Which of the following data collection strategies systematically tests the effects of various factors on an outcome?A . Content analysis.B . Sampling.C . Evaluation synthesis.D . Modeling.View AnswerAnswer: D

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...

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...

Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a follow-up of audit recommendations when developing engagement work schedules. Does the CAE’s decision violate the Standards?A . No, because the Standards do not specify whether follow-up is needed.B . No, because when there...