IIA-CIA-Part1 practice questions, page 9 of 47, with answer review and explanations.
Question 41
Which of the following characteristics could indicate high risk?
Management decisions are made by a committee of mid to higher level management personnel.
The company is not in a rapidly growing industry.
The company's profitability is lower than the industry norm.
Management turnover has been very low.
Question 42
An auditor is using audit software to check inventory accuracy. Which of the following would be an indicator of poor input edit controls?
Negative quantities on hand.
Total dollar values of zero for some parts.
Alpha characters in the field for order lead time.
Reorder levels set too high.
Question 43
Two individuals are being considered for an audit team that is to perform a highly technical review. Which of the following situations would preclude selection of the individual for the audit due to an objectivity concern? I. Person A is a member of the internal audit staff and has the required technical skills. Person A participated in a controls review of the system to be audited when it was being developed. II. Person B is a technical specialist who understands the audit area but is not a member of the internal audit staff. Although person B has personal credibility in the information systems department to be audited, person B works for another department in the organization.
I only
II only
Both I and II.
Neither I nor II.
Question 44
Which of the following measurements could an auditor use in an audit of the efficiency of a motor vehicle inspection facility?
The total number of cars approved.
The ratio of cars rejected to total cars inspected.
The number of cars inspected per inspection agent.
The average amount of fees collected per cashier.
Question 45
A code of business conduct provides?
A fraud avoidance plan that does not explicitly describe punishments for violations.
A passive method of fraud deterrence.
A program to anonymously report irregularities to authorities.