IIA-CIA-Part2

IIA-CIA-Part2 practice questions, page 19 of 39, with answer review and explanations.

Question 91

If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?

  1. The experience and knowledge of the auditor.
  2. The adverse consequences of noncompliance.
  3. The acceptable level of risk of making an incorrect audit conclusion.
  4. The cost of performing auditing procedures on sample selections.

Question 92

Which of the following describes an internal auditor's responsibilities to include audit procedures to detect fraud in audits of a multinational organization?

  1. International Accounting Standards require the internal auditor to include audit procedures which would detect fraud if it would cause a material misrepresentation of the financial statements.
  2. Internal auditors do not have any specific responsibilities with respect to including fraud-related audit procedures.
  3. Proper audit procedures, when carried out with due professional care, will guarantee that fraud, if present, will be detected.
  4. If significant control weaknesses are detected, additional tests should be directed toward other indicators of fraud.

Question 93

An appliance repair company is considering relocating the center that houses its service vehicles. An internal auditor wants to determine the potential reduction in average miles driven by the service vehicles if the center is relocated. Which of the following statistical sampling methods would be most appropriate for this test?

  1. Attributes sampling.
  2. Discovery sampling.
  3. Probability-proportional-to-size sampling.
  4. Mean-per-unit sampling.

Question 94

Monetary-unit sampling is most useful when the internal auditor:

  1. Is testing the accounts payable balance.
  2. Cannot cumulatively arrange the population items.
  3. Expects to find several material errors in the sample.
  4. Is concerned with overstatements.

Question 95

If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?

  1. Attributes sampling.
  2. Discovery sampling.
  3. Targeted sampling.
  4. Variables sampling.