Pass the IIA CIA Challenge Exam IIA-ACCA Questions and answers with CertsForce

Verify that amounts are correct.

Verify that payments are on time.

Verify that recipients are valid employees.

Verify that benefits deductions are accurate.

Sufficiency.

Appropriateness.

Effective deployment.

Cost effectiveness.

Training costs allocated to the number of aircraft delivered, and the cost of actual production hours completed to date.

All completed training costs, and the cost of actual production hours completed to date.

Training costs allocated to the number of aircraft delivered, and 50% of contracted production costs.

All completed training costs, and 50% of the contracted production costs.

1 and 3 only

1 and 4 only

2 and 3 only

2 and 4 only

Define the duties and responsibilities needed from management to perform the engagement.

Disclose the fact that auditors who perform the work may not be subject matter experts in the topic of the review.

Clarify that matters discovered during the engagement may also be reported to senior management and the audit committee.

Disclose the fact that follow-up reviews may be conducted to ensure that recommendations are implemented adequately.

Inform the audit supervisor.

Investigate the potential conflict of interest.

Inform the external auditors of the potential conflict of interest.

Disregard the potential conflict, because it is outside the scope of the audit assignment.

Management disagrees with the report findings and conclusions in their responses.

Management has already satisfactorily completed the recommended corrective action.

Management has provided additional information that contradicts the findings.

Management believes that the finding is insignificant and unfairly included in the report.

Develop the scope of the audit based on a bottom-up perspective to ensure that all business objectives are considered.

Develop the scope of the audit to include controls that are necessary to manage risk associated with a critical business objective.

Specify that the auditors need to assess only key controls, but may include an assessment of non-key controls if there is value to the business in providing such assurance.

Ensure the audit includes an assessment of manual and automated controls to determine whether business risks are effectively managed.

The review should focus on the efficiency of the controls in place to prevent fraud.

The scope of the review does not need to include all operating areas of the organization.

The cost of the control should be compared to the benefit of mitigating the related risk.

The review should assess whether the internal controls can be circumvented.

All assurance engagement observations should be communicated to the audit committee.

All assurance engagement observations should be included in the main section of the engagement communication.

During the "communicate" phase of an assurance engagement, it is best to define the methods and timing of engagement communications.

A detailed escalation process should be developed during the planning stage of an assurance engagement.

The audit supervisor should include the new contracts in the finding for the final audit report.

The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.

The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.

The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.

Audit client management only

Executive management only

Audit client management, executive management, and others approved by the chief audit executive.

Audit client management, executive management, and any those who request a copy.

Strategic plans reflect the organization's business objectives and overall attitude toward risk.

Strategic plans are helpful to identify major areas of activity, which may direct the allocation of internal audit activity resources.

Strategic plans are likely to show areas of weak financial controls.

The strategic plan is a relatively stable document on which to base audit planning.

Refuse to accept the consulting engagement because it would be a violation of independence.

Collaborate with the external auditor to ensure the most efficient use of resources.

Accept the engagement but hire an external training specialist to provide the necessary expertise.

Accept the engagement even if the audit engagement staff was previously responsible for operational areas being trained.

The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.

The actions of external auditors and other external assurance providers is not encompassed by internal audit's follow-up process.

Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.

The follow-up process must be complete and documented in the working papers in order to conclude the engagement.