IIA-CIA-Part2

IIA-CIA-Part2 practice questions, page 18 of 39, with answer review and explanations.

Question 86

An internal auditor would most likely use attributes sampling when testing which of the following?

  1. Accounts receivable balances.
  2. Correct coding of accounts payable disbursement vouchers.
  3. Year-end inventory value.
  4. Fixed asset book value.

Question 87

An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?

  1. Confirm accounts receivable.
  2. Confirm accounts payable.
  3. Review the endorsements and banks of deposit on customers' canceled checks.
  4. Flowchart and analyze key controls in the cash receipts process.

Question 88

If an auditor expects to find numerous discrepancies between recorded values and audited values of sample selections, which sampling technique would be most appropriate?

  1. Attributes sampling.
  2. Probability-proportional-to-size sampling.
  3. Difference estimation sampling.
  4. Discovery sampling.

Question 89

During an audit of a retail organization, an internal auditor found a scheme in which the warehouse director and the purchasing agent diverted approximately $500,000 of goods to their own warehouse, then sold the goods to third parties. The fraud was not found earlier since the warehouse director updated the perpetual inventory records and then forwarded receiving reports to the accounts payable department for processing. Which of the following procedures would have most likely led to the discovery of the missing materials and the fraud?

  1. Select a random sample of receiving reports and trace to the recording in the perpetual inventory records. Note differences and investigate by type of product.
  2. Select a random sample of purchase orders and trace to receiving reports and to the records in the accounts payable department.
  3. Take an annual physical inventory, reconciling amounts with the perpetual inventory records. Note the pattern of differences and investigate.
  4. Select a random sample of sales invoices and trace to the perpetual inventory records to see if inventory was on hand. Investigate any differences.

Question 90

Which of the following factors would increase the confidence level in a variables sampling plan? I. A larger sample size. II. A stratified sample. III. A larger standard deviation.

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