IIA-CIA-Part1

IIA-CIA-Part1 practice questions, page 16 of 47, with answer review and explanations.

Question 76

To promote a positive image within an organization, a chief audit executive (CAE) adjusted the audit plan to focus on assurance engagements that highlighted potential costs to be saved. Negative observations were to be omitted from engagement final communications. Which action taken by the CAE would be considered a violation of the Standards? I. The focus of the audit function was changed without modifying the audit charter or notifying the audit committee. II. Negative observations were omitted from the engagement final communications. III. Cost savings and recommendations were highlighted in the engagement final communications.

  1. II only
  2. I and II only
  3. I and III only
  4. I, II, and III.

Question 77

Which of the following actions would be considered a violation of the Standards? I. Drafts of engagement communications were reviewed with the audit client to obtain input. The client's comments were considered when developing the engagement final communication. II. An auditor participated as part of a development team to review the control procedures to be incorporated into a major computer application under development. III. Given limited resources, the chief audit executive performed a risk analysis to determine which functions to audit.

  1. II only
  2. I and III only
  3. I, II, and III.
  4. None of the above.

Question 78

A manufacturer uses a materials requirements planning (MRP) system to track inventory, orders, and raw materials requirements. What condition should an auditor search for in the MRP database if a preliminary assessment indicated that inventory is understated? I. Item cost set at zero. II. Negative quantities on hand. III. Order quantity exceeding requirements. IV. Inventory lead times exceeding delivery schedule.

  1. I and II only
  2. I and IV only
  3. II and IV only
  4. III and IV only

Question 79

To identify those components of a telecommunications system that present the greatest risk, an internal auditor should first:

  1. Review the open systems interconnect network model.
  2. Identify the network operating costs.
  3. Determine the business purpose of the network.
  4. Map the network software and hardware products into their respective layers.

Question 80

The chief audit executive's responsibility regarding control processes includes:

  1. Assisting senior management and the audit committee in the development of an annual assessment about internal control.
  2. Overseeing the establishment of internal control processes.
  3. Maintaining the organization's governance processes.
  4. Ensuring that the internal audit activity assesses all control processes annually.