Free Access IIA.IIA-CIA-Part2.v2022-07-26.q511 Practice Test (Page 80)

Question 391

Which of the following would be the least important reason for a company to merge with another company?

A.To diversify risk.

B.As a response to new government policy.

C.To reduce labor costs.

D.To increase stock prices.

Question 392

An internal auditor has completed an audit of an organization's activities and is ready to issue a report.
However, the client disagrees with the internal auditor's conclusions. The auditor should:

A.Withhold the issuance of the audit report until agreement on the issues is obtained.

B.Issue the audit report and state both the auditor and client positions and the reasons for the disagreement.

C.Issue the audit report and omit the client's conclusion as it is not the opinion of the internal auditor.

D.Perform additional work, with the client's concurrence, to resolve the areas of disagreement and delay the issuance of the report until agreement is reached.

Question 393

Which of the following would provide the greatest assurance of the accuracy of a computer program's computation of freight charges for catalog sales?

A.Use either test data or parallel simulation to test the computer application.

B.Use discovery sampling, selecting transactions from invoices which should have freight charges added to them.

C.Use generalized audit software to select a monetary-unit sample of invoices that have been billed to customers.

D.Use difference estimation, selecting transactions from invoices which should have freight charges added to them.

Question 394

During an engagement, an internal auditor discovered that an organization's policy on delegation of authority listed six individuals who were no longer employed with the organization. In addition, four individuals acting with disbursement authority were not identified in the policy as having such authority.
Which of the following is the most effective course of action to address the control weakness?

A.Immediately initiate a complete audit of the disbursement function to determine if significant frauds have occurred.

B.Review further to ensure that the four individuals do not have the appropriate authority through delegation.

C.Advise management to add the four additional names and remove the incorrect names from the policy to make it current.

D.Recommend that management review the process supporting the policy and make improvements.

Question 395

Which of the following would be the best audit procedure to use to determine if a division's unusually high sales and gross margin for November and December were the result of fraudulently recorded sales?

A.Trace a sample of shipping documents to related sales invoices to verify proper billing.

B.Confirm accounts receivable balances with customers.

C.Compare sales and gross margin totals with those of the previous ten months and the first month of the following year.

D.Use regression analysis techniques to estimate the sales and cost of goods sold for November and December.

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Question 391

Question 392

Question 393

Question 394

Question 395

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