IIA-CIA-Part2

IIA-CIA-Part2 practice questions, page 8 of 39, with answer review and explanations.

Question 36

Productivity statistics are provided quarterly to a company's board of directors. An auditor checked the ratios and other statistics in the four most recent reports. The auditor used scratch paper and copies of the board reports to verify the accuracy of computations and compared the data used in the computations with supporting documents. The auditor wrote a note describing this work for the workpapers and then discarded the scratch paper and report copies. The auditor's note stated. "The ratios and other statistics in the quarterly board reports were checked for the last four quarters, and appropriate supporting documents were examined. All amounts appear to be appropriate." In this situation:

  1. Four quarters is not a large enough sample on which to base a conclusion.
  2. The auditor's workpapers are not sufficient to facilitate an efficient review of the auditor's work.
  3. The auditor should have included the scratch paper in the workpapers.
  4. The auditor should have considered whether the information in the board report was compiled efficiently.

Question 37

Which of the following is an example of the verification of internal documentary evidence?

  1. Reviewing a carrier's bill of lading.
  2. Reconciling a vendor's month-end statement.
  3. Vouching a copy of a sales invoice to receivables.
  4. Recalculating a customer's purchase order.

Question 38

The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures? I. Financial measures. II. Internal business process measures. III. Client satisfaction measures. IV. Innovation and learning measures.

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

Question 39

An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement: "A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted." The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor's workpaper?

  1. Use of audit verification symbols to show that each file was examined.
  2. Removal of the employee names to protect their confidentiality.
  3. Justification for the sample size.
  4. Listing of the actual documents examined for each employee.

Question 40

During an interview with a manager in a company's claims department, an auditor noted that the manager became nervous and changed the subject whenever the auditor raised questions about certain types of claims. The manager's answers were consistent with company policies and procedures. When documenting the interview, the auditor should:

  1. Document the manager's answers, noting the nature of the nonverbal communication.
  2. Document the manager's answers but not the nonverbal communication because it is subjective and is not corroborated.
  3. Conclude that the nonverbal communication is persuasive and that sufficient evidence exists to begin a fraud investigation.
  4. Disregard the interview entirely because the verbal and nonverbal communications were contradictory.