IIA Certified Internal IIA-CIA-PART2 Questions & Answers

• Question 591:

  What would be used to determine the collectability of accounts receivable balances?

  A. The file of related shipping documents.

  B. Negative accounts receivable confirmations.

  C. Positive accounts receivable confirmations.

  D. An aged accounts receivable listing.

  Correct Answer: D

• Question 592:

  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. Conditions that were not specifically considered by the auditor may go untested.

  C. The approach requires the creation of "dummy companies," possibly destroying or altering actual company data in the process.

  D. Inclusion of atypical data in the test data may cause errors to be noted on the exception report.

  Correct Answer: B

• Question 593:

  An organization's internal auditors are reviewing production costs at a gas-powered electrical generating plant. They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors. The auditors should immediately report the concern to:

  A. The regulatory agency.

  B. Plant management.

  C. A plant health and safety officer.

  D. The risk management function.

  Correct Answer: B

• Question 594:

  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 to the budget.

  C. Lock the bins during normal working hours.

  D. None of the above actions are needed for items of minor cost and size.

  Correct Answer: B

• Question 595:

  A manufacturing process could create hazardous waste at several production stages, from raw materials handling to finished goods storage. If the objective of a pollution prevention audit engagement is to identify opportunities for minimizing waste, in what order should the following opportunities be considered?

  I. Recycling and reuse.

  II. Elimination at the source.

  III. Energy conservation.

  IV.

  Recovery as a usable product Treatment.

  A.

  V, II, IV, I, III.

  B.

  IV, II, I, III, V.

  C.

  I, III, IV, II, V.

  D.

  III, IV, II, V, I.

  Correct Answer: B

• Question 596:

  When internal auditors provide consulting services, the scope of the engagement is primarily determined by:

  A. Internal auditing standards.

  B. The audit engagement team.

  C. The engagement client.

  D. The internal audit activity's charter.

  Correct Answer: C

• Question 597:

  An audit of management's quality program includes testing the accuracy of the cost-of-quality reports provided to management. Which of the following internal control objectives is the focus of this testing?

  A. To ensure compliance with policies, plans, procedures, laws, and regulations.

  B. To ensure the accomplishment of established objectives and goals for operations or programs.

  C. To ensure the reliability and integrity of information.

  D. To ensure the economical and efficient use of resources.

  Correct Answer: C

• Question 598:

  An internal auditor is assigned to conduct an audit of security for a local area network (LAN) in the finance department of the organization. Investment decisions, including the use of hedging strategies and financial derivatives, use data and financial models which run on the LAN. The LAN is also used to download data from the mainframe to assist in decisions. Which of the following should be considered outside the scope of this security audit engagement?

  A. Investigation of the physical security over access to the components of the LAN.

  B. The ability of the LAN application to identify data items at the field or record level and implement user access security at that level.

  C. Interviews with users to determine their assessment of the level of security in the system and the vulnerability of the system to compromise.

  D. The level of security of other LANs in the company which also utilize sensitive data.

  Correct Answer: D

• Question 599:

  Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?

  A. Checks are not restrictively endorsed when received.

  B. Only one signature is required on the organization's checks.

  C. One employee handles both accounts receivable and purchase orders.

  D. One employee handles both cash deposits and accounts payable.

  Correct Answer: A

• Question 600:

  The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:

  A. Determining if controls over record keeping and reporting are adequate and effective.

  B. Reviewing data provided by information systems to test compliance with external requirements.

  C. Determining if information systems provide management with timely information.

  D. Determining if information systems provide complete information.

  Correct Answer: A