IIA-CIA-Part1

IIA-CIA-Part1 practice questions, page 30 of 47, with answer review and explanations.

Question 146

Noncompliance with which of the following would cause a control deficiency related to privacy protection practices? I. An organization's internal privacy policies. II. Financial accounting standards. III. Privacy laws and regulations. IV. The Standards.

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

Question 147

A tax consultancy agency retains sensitive personal information regarding its clients. Which of the following is a violation of acceptable privacy practices?

  1. Copies of printed client information not used by the agency are shredded.
  2. Employees share client information with coworkers with the permission of the client.
  3. The agency only releases client information with management's approval.
  4. The agency advises clients of their privacy rights before they commence business with the agency.

Question 148

When an external auditor unknowingly fails to modify an opinion on financial statements that are materially misstated, this is an example of:

  1. An inherent risk.
  2. A control risk.
  3. An audit risk.
  4. A residual risk.

Question 149

When a risk assessment process has been used to construct an audit engagement schedule, which of the following should receive attention first?

  1. The external auditors have requested assistance for their upcoming annual audit.
  2. A new accounts payable system is currently undergoing testing by the information technology department.
  3. Management has requested an investigation of possible lapping in receivables.
  4. The existing accounts payable system has not been audited over the past year.

Question 150

All of the following would normally be involved in preparing for and carrying out the internal audit activity's annual plan except:

  1. Establishing policies and procedures for workpapers and referencing.
  2. Providing periodic activity reports to the audit committee on audit engagements in progress.
  3. Assessing the amount of risk in major departments.
  4. Training audit staff on appropriate audit methodologies for addressing any newly identified risks.