IIA-CIA-Part2 practice questions, page 30 of 39, with answer review and explanations.
Question 146
The scope of a business process review primarily involves:
Appraising the environment and comparing against established criteria.
Assessing the organization's system of internal controls.
Reviewing routine financial information and assessing the appropriateness of various accounting treatments.
Evaluating organizational and departmental structures, including assessments of transaction flows.
Question 147
An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between six and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. Which of the following is the most appropriate course of action for the chief audit executive to take?
Assess the adequacy of the action plan and monitor key dates and deliverables.
Schedule a follow-up audit engagement to assess the status of corrective action.
Reassign information systems auditors to assist the information technology department in correcting the weaknesses.
Evaluate statistics related to unplanned system outages, unauthorized access attempts, and denials of service to assess the effectiveness of corrections.
Question 148
An internal auditor found that the cost of some material installed on capital projects had been transferred to the inventory account because the capital budget had been exceeded. Which of the following would be an appropriate technique for the auditor to use to determine the extent of the problem?
Identify variances between amounts capitalized each month and the capital budget.
Analyze a sample of capital transactions each quarter to detect instances in which installed material was transferred to inventory.
Review all journal entries that transferred costs from capital to inventory accounts.
Compare inventory receipts with debits to the inventory account and investigate discrepancies.
Question 149
When conducting audit follow-up of a finding related to cash management routines, an internal auditor would expect to find that all of the following changes have occurred except:
The steps being taken are resolving the condition disclosed by the finding.
Inherent risk has been eliminated as a result of resolution of the condition.
Controls have been implemented to deter or detect a recurrence of the finding.
Benefits have accrued to the entity as a result of resolving the condition.
Question 150
Which of the following represents appropriate evidence of supervisory review of engagement workpapers? I. A supervisor's initials on each workpaper. II. An engagement workpaper review checklist. III. A memorandum specifying the nature, extent, and results of the supervisory review of workpapers. IV. Performance appraisals that assess the quality of workpapers prepared by auditors.