IIA IIA-ACCA Exam Questions Free Practice Test

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Viewing questions 76-90 out of questions

Questions # 76:

According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing department?

1. Obtain and review all purchasing-related audit reports issued within the past year.

2. Meet with the quality assurance group to discuss its previous reports of any purchasing-related findings.

3. Review a memo written by the purchasing manager that outlines ongoing problems with the purchasing software.

4. Request a copy of the report from a purchasing audit conducted last year by an external service provider.

Options:

1 and 2.

1 and 3.

2 and 4.

3 and 4.

Expert Solution

Questions # 77:

Which of the following is an example of a management control technique?

Options:

A budget.

A risk assessment.

The board of directors.

The control environment.

Expert Solution

Questions # 78:

The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?

Options:

Pressure or incentive.

Opportunity.

Rationalization.

Commitment.

Expert Solution

Questions # 79:

An internal audit charter should do which of the following?

Options:

Outline the schedule of future audits.

Define the scope of internal audit activities.

Establish the size of the internal audit activity.

Communicate the internal audit activity's goals.

Expert Solution

Questions # 80:

Which of the following best describes the misdirection of payments on accounts receivable to an employee's bank account?

Options:

Fraud open on the books.

Fraud hidden on the books.

Fraud off the books.

Fraud on the balance sheet.

Expert Solution

Questions # 81:

The security department uncovered what appears to be a complex fraud in the accounting department. The CEO has requested the internal audit activity to investigate the fraud. If the internal audit staff lacks the expertise to conduct the investigation, how should the chief audit executive proceed?

Options:

Disclose the deficiency, and request that the investigation be reassigned to the first line of defense.

Proceed with the investigation, as internal auditors are not required to have fraud expertise.

Outsource the sensitive investigation to a third-party consultant with fraud expertise.

Select a member of the accounting department who is not involved in the fraud to join the investigation team in a consulting capacity.

Expert Solution

Questions # 82:

According to The MA Code of Ethics, which of the following is one of the rules of conduct for objectivity?

Options:

Internal auditors shall continually improve their proficiency and effectiveness and quality of their services.

Internal auditors shall respect and contribute to legitimate and ethical objectives of the organization.

Internal auditors shall not accept anything that may impair or be presumed to impair their professional judgment.

Internal auditors shall be prudent in the use and protection of information acquired in the course of their duties.

Expert Solution

Questions # 83:

Which of the following is an example of a risk management avoidance response?

Options:

Exiting a marketplace.

Recalling a product.

Obtaining product insurance.

Outsourcing production.

Expert Solution

Questions # 84:

According to IIA guidance, which of the following is least compliant with the requirements regarding an internal auditor's need for objectivity?

Options:

An internal auditor assessed the effectiveness of controls over payroll software, which he had helped implement with a previous employer.

An internal auditor participated in an audit of controls around absenteeism, despite providing some consultation on controls in this area earlier in the year.

An internal auditor performed an assurance engagement for the effectiveness of accounts payable access controls, one of which he previously helped to design.

An internal auditor, previously employed in the quality assurance operations area, performed a consulting engagement for the operations manager.

Expert Solution

Questions # 85:

An assurance mapping exercise helps an organization do which of the following?

1. Provide assurance to stakeholders that risks are managed and reported, and regulatory and legal obligations are met.

2. Fulfill best practices in the industry.

3. Identify and address any gaps in the risk management process.

4. Identify fraud.

Options:

1 and 4.

1 and 3.

2 and 3.

3 and 4.

Expert Solution

Questions # 86:

During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report. Which of the following is especially important in dealing with this type of situation?

Options:

Soft skills in communication, negotiation, and collaboration.

Technical skills in the area under review.

Professional qualifications and certification in internal auditing.

Confidentiality and independence.

Expert Solution

Questions # 87:

According to COSO, which of the following describes a principle related to the control environment?

Options:

The organization identifies and assesses changes that could significantly impact the system of internal control.

The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.

The organization selects and develops control activities that contribute to the mitigation of risks.

The organization performs evaluations to ascertain whether internal control components are present and functioning.

Expert Solution

Questions # 88:

Which of the following are generally recognized as essential elements of a corporate social responsibility program?

Options:

Human rights and the environment.

Organizational governance and financial reporting.

Fair operating practices and government regulation.

Consumer issues and return on investment.

Expert Solution

Questions # 89:

According to IIA guidance, which of the following statements about working papers is false?

Options:

They assist in the implementation of recommendations.

They provide support for communication to third parties.

They demonstrate compliance with auditing standards.

They contribute to development of the internal audit staff.

Expert Solution

Questions # 90:

Which of the following would not be considered part of preliminary survey of an engagement area?

Options:

Interviews with individuals affected by the entity.

Functional walk through test.

Analytical reviews.

Sampling scope.

Expert Solution

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