Free Access IIA.IIA-CIA-Part2.v2023-04-08.q383 Practice Test (Page 60)

Question 291

Which of the following recommendations made by the internal audit activity (IAA) is most likely to help prevent fraud?

A.A review of customer service-level agreements found that orders to several customers are frequently delivered late. The IAA recommends that the organization extend the expected delivery time advertised on its website.

B.A vacation policy compliance review found that employees frequently leave on vacation before their leave applications are signed by their manager. The IAA recommends that the manager attend to the leave applications in a more timely fashion.

C.A review of internal service-level agreement compliance in financial services found that requests for information frequently are fulfilled up to two weeks late. The IAA recommends that the financial services unit be eliminated for its ineffectiveness.

D.A review of password policy compliance found that employees frequently use the same password more than once during a year. The IAA recommends that the access control software reject any password used more than once during a 12-month period.

Question 292

Which of the following is a red flag associated with fictitious revenues?

A.Slow growth or unusually low profitability.

B.Substantial increase in receivables turnover.

C.Significant transactions with related parties.

D.Unusual decrease in the number of days' sales in receivables.

Question 293

A fast-food company is developing a computer simulation involving arrival time at a drive-through restaurant.
The distribution for arrival times is:
Time
Single-Digit Random
Between Arrivals
Probability
Number Assigned
1 minute
0.1
0
2 minutes
0.2
1, 2
3 minutes
0.3
3, 4, 5
4 minutes
0.4
6, 7, 8, 9
Six random numbers are selected to represent the arrival of six cars: 1, 6, 9, 0, 5, 6. The mean time between arrivals for these cars, in this run of the simulation model, is:

A.1 minute.

B.2 minutes.

C.3 minutes.

D.4 minutes.

Question 294

According to the International Professional Practices Framework, which of the following statements is true regarding the use of the statement, "Conducted in Conformance with the International Standards for the Professional Practice of Internal Auditing," when communicating results of a seven-year-old internal audit activity?

A.The statement may be used only when conducting international engagements.

B.The statement may be used only if the results of the quality assurance and improvement program support the statement.

C.The statement may be used whether or not the internal audit department has an external quality assessment review or an independent validation of a self-assessment.

D.The statement should not be used for a consulting engagement.

Question 295

A.The statement may be used only if the results of the quality assurance and improvement program support the statement.

B.The statement may be used only when conducting international engagements.

C.The statement may be used whether or not the internal audit department has an external quality assessment review or an independent validation of a self assessment.