Download Exam IIA-CIA-Part1 Practice Test Questions with 100% Verified Answers [Q123-Q140]

NO.123 An internal auditor assigned to a supplier management process engagement reviews the risk assessment with the process owner The auditor inquires about the risk response for potentially engaging unqualified third-party service providers The process owner responds that due diligence checks are undertaken to make sure that third parties possess requisite competencies before they are engaged Which of the following risk management techniques is the process owner using?

NO.124 While reviewing first quarter sales transactions,an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because the customer’s account number was not found in the customer master file. In this scenario,which of the following controls was lacking?

NO.125 Which of the following factors is not likely to affect the level of inherent risk associated with an application system?

NO.126 When auditing the award of a major contract,which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?
1.Subsequent change orders increase requirements for low-bid items.
2.Material contract requirements are different on the actual contract than on the request for bids.
3.A
high percentage of employees are charged to indirect accounts. 4.Losing bidders are hired as subcontractors.

NO.127 An internal auditor makes a series of observations when performing an analytical review of division operations.
The auditor notes the following things: the current ratio is increasing and the quick ratio is decreasing, sales and current liabilities have remained constant, and the number of day sales in inventory is increasing. Which conclusion should the auditor draw from this data?

NO.128 Which of the following would be considered an indicator that an organization’s ethics program is not yet well developed?

NO.129 Which of the following is an advantage of email surveys compared to face-to-face interviews?

NO.130 Which of the following best illustrates the application of due professional care during an audit of the procurement department?

NO.131 In an assurance engagement focused on the adequacy of organizationwide risk management practices, which of the following best describes a primary area of interest for the engagement?

NO.132 The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance, which of the following qualitative metrics would be appropriate for the CAE to use?
1. Average client customer satisfaction score for a given year.
2. Client survey comments on how to improve the IAA.
3. Auditor interviews once an audit has been completed.
4. Percentage of audits completed within 90 days.

NO.133 Organizations that use a highly structured command-and-control management approach are at greater risk of:

NO.134 Suspecting fraud, the chief financial officer (CFO) asked the internal audit activity to investigate a significant increase in travel related expenditures. Work was performed by a qualified internal auditor. Following the completion of the engagement, the chief audit executive (CAE) reported to the CFO that no violations were found and no fraud had occurred.
According to the Standards, which of the following principles did the CAE violate?

NO.135 An internal 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?

NO.136 Which of the following would be considered a preventive control?

NO.137 During a review of data center physical security and environmental controls, an auditor should ensure that:
I. Visitors are accompanied by authorized personnel at all times.
II. Only developers and operators have access to the data center.
III. Fire suppression equipment is tested periodically.
IV. Fire and water detectors have been installed.

NO.138 Feedback on engagements from audit clients, annual benchmarking of the internal audit activity’s (IAA’s) performance against best practice, and analyses of project budgets and audit plan completion are all tools that can best be used by the IAA for which purpose?

NO.139 An internal auditor audited a department store’s cash function. Which of the following actions would indicate a lack of due professional care by the auditor?

NO.140 An internal auditor finds during an engagement that payment for the organization’s general insurance policy is two months overdue. The issue is informally mentioned to the finance department which immediately submits the invoice for payment. The auditor decides to exclude this finding from the final audit report as the oversight was immediately corrected and there were no consequences because of this late payment.
Which of the following rules of conduct as described in the IIA Code of Ethics,did the auditor fail to uphold?