Questions for the IIA CIA PART2 were updated on : Jul 20 ,2024
Which of the following would be a red flag that indicates the possibility of inventory fraud?
I. The controller has assumed responsibility for approving all payments to certain vendors.
II. The controller has continuously delayed installation of a new accounts payable system, despite a
corporate directive to implement it.
III. Sales commissions are not consistent with the organization's increased levels of sales.
IV. Payments to certain vendors are supported by copies of receiving memos, rather than originals.
C
During an operational audit of a chain of pizza delivery stores, an auditor determined that cold pizzas
were causing customer dissatisfaction. A review of oven calibration records for the last six months
revealed that adjustments were made on over 40 percent of the ovens. Based on this, the auditor:
B
When assessing the risk associated with an activity, an internal auditor should:
B
Which of the following procedures would provide the best evidence of the effectiveness of a credit-
granting function?
B
The most effective way for internal auditors to enhance the reliability of computerized financial and
operating information is by:
A
Which of the following situations might allow an employee to steal checks sent to an organization
and subsequently cash them?
A
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?
D
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?
C
When internal auditors provide consulting services, the scope of the engagement is primarily
determined by:
C
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.
B
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:
B
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?
B
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?
B
Which of the following would be most helpful to a governmental auditor searching for the existence
of multiple welfare claims that were filed under different names but used the same address?
B
What would be used to determine the collectability of accounts receivable balances?
D