IIA-CIA-Part2

IIA-CIA-Part2 practice questions, page 11 of 39, with answer review and explanations.

Question 51

As part of an operational audit of the shipping department, an auditor selected a sample of 45 daily shipping logs from the department's files. On 44 of the days, the log contained a sufficient number of shipments to meet the department's daily quota. Based on this test, the auditor concluded that the shipping department was effective at meeting its quotas. Which of the following is true about the auditor's conclusion?

  1. The number of items selected for testing is inadequate to justify the conclusion.
  2. The shipping department is effective in meeting its responsibilities.
  3. This conclusion would negate any need to perform tests of efficiency.
  4. None of the above.

Question 52

An internal audit activity implemented an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their test results. The auditors can conclude that:

  1. The system is properly capturing the hours worked by employees during the year and the hours have been properly submitted to payroll and processed correctly.
  2. All employees were correctly paid during the year and their pay was correctly computed.
  3. The computer application and its control procedures were processing payroll transactions correctly during the past year.
  4. All of the above.

Question 53

A code of ethics within the internal auditing profession is necessary in order to:

  1. Reduce the likelihood that members of the profession will be sued for substandard work.
  2. Ensure that all members of the profession perform at approximately the same level of competence.
  3. Provide guidance to internal auditors in their service to others.
  4. Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.

Question 54

An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau. What action should the auditor take, considering the outsourcing decision?

  1. Review the controls over payroll in both the company and the service bureau.
  2. Review only the company's controls over data sent to and received from the service bureau.
  3. Review only the controls over payments to the service bureau based on the contract.
  4. Cancel the engagement because the processing is being performed outside of the organization.

Question 55

An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. The best control to ensure that the table is updated correctly for only valid pay changes would be to:

  1. Limit access to the data table to management and line supervisors who have the authority to determine pay rates.
  2. Require a supervisor in the department, who does not have the ability to change the table, to compare the changes to a signed management authorization.
  3. Ensure that adequate edit and reasonableness checks are built into the automated system.
  4. Require that all pay changes be signed by the employee to verify that the change goes to a bona fide employee.