Free Access IIA.IIA-CIA-Part2.v2022-09-28.q589 Practice Test (Page 74)

Question 361

According to the International Professional Practices Framework, which of the following situations is an indicator of a healthy relationship between the audit committee and the internal audit function?

A.The CAE sends the audit committee all communications between the internal audit department and the audit client in order to keep the audit committee up to date on the engagement.

B.The CAE does not distribute audit reports to the audit committee. However, the audit committee is made aware of the scope and findings of audits performed.

C.Whenever a potential audit finding or testing exception is first identified, the audit committee is immediately notified, as well as for any subsequent changes in the status of the engagement.

D.The chief audit executive (CAE) has direct access to the audit committee and the board but typically does not interact directly with them unless a material weakness in the control environment is identified.

Question 362

Which of the following would be an appropriate role of the internal audit function?

A.Determine the consequences for ethics violations.

B.Be responsible for the management of a whistle blowing hotline.

C.Establish the ethics policies for the organization.

D.Evaluate the effectiveness of the organization's ethics-related activities.

Question 363

Insurance companies often receive electronic hospitalization claims directly from hospitals. Which of the following control procedures would be most effective in detecting fraud in such an environment?

A.Use integrated test facilities to test the accuracy of processing in a manner that is transparent to data processing.

B.Develop monitoring programs to identify unusual types of claims or an unusual number of claims by demographic class for investigation by the claims department.

C.Use generalized audit software to match the claimant identification number with a master list of valid policyholders.

D.Develop batch controls over all items received from a particular hospital and process those claims in batches.

Question 364

An organization's internal auditors are reviewing production costs at a gas-powered electrical generating plant. They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors. The auditors should immediately report the concern to:

A.The regulatory agency.

B.A plant health and safety officer.

C.Plant management.

D.The risk management function.

Question 365

A governmental auditor was assigned to determine reasons why the students in one region scored significantly higher on education evaluation tests than did the students in another region. Previous research showed that there is a direct correlation between public financial support and student results. Which of the following is most likely to explain the difference in the regional results?

A.The more successful region spends 30 percent more money on education than does the other region.

B.A higher percentage of the general tax fund is spent on education in the more successful region than in the other region.

C.The more successful region spends more money per student on education than does the other region.

D.The more successful region has increased educational spending by an average of 10 percent each year for the last three years, whereas the other region's increase averaged only three percent.

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Question 361

Question 362

Question 363

Question 364

Question 365

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