IIA-CIA-Part2

IIA-CIA-Part2 practice questions, page 29 of 39, with answer review and explanations.

Question 141

An internal auditor for a financial institution has just completed an audit of loan processing. Of the 81 loans approved by the loan committee, the auditor found seven loans which exceeded the approved amount. Which of the following actions would be inappropriate on the part of the auditor?

  1. Examine the seven loans to determine if there is a pattern. Summarize amounts and include in the engagement final communication.
  2. Report the amounts to the loan committee and leave it up to them to correct. Take no further follow-up action at this time and do not include the items in the engagement final communication.
  3. Follow up with the appropriate vice president and include the vice president's acknowledgment of the situation in the engagement final communication.
  4. Determine the amount of the differences and make an assessment as to whether the dollar differences are material. If the amounts are not material, not in

Question 142

During a systems development audit, software developers indicated that all programs were moved from the development environment to the production environment and then tested in the production environment. What should the auditor recommend? I. Implement a test environment to ensure that testing is not performed in the production environment. II. Require developers to move modified programs from the development environment to the test environment and from the test environment to the production environment. III. Eliminate access by developers to the production environment.

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

Question 143

A post-audit questionnaire sent to audit clients is an effective mechanism for:

  1. Substantiating audit observations.
  2. Promoting the internal audit activity.
  3. Improving future audit engagements.
  4. Validating process flow.

Question 144

As part of an operational audit, an auditor compared records of current inventory with usage during the prior two-year period and determined that the spare parts inventory was excessive. What step should the auditor perform first?

  1. Determine the effects of a stock-out on the organization's profitability.
  2. Determine whether a clear policy exists for setting inventory limits.
  3. Determine who approved the purchase orders for the spare parts.
  4. Determine whether purchases were properly recorded.

Question 145

A performance audit engagement typically involves:

  1. Review of financial statement information, including the appropriateness of various accounting treatments.
  2. Tests of compliance with policies, procedures, laws, and regulations.
  3. Appraisal of the environment and comparison against established criteria.
  4. Evaluation of organizational and departmental structures, including assessments of process flows.