File Info
| Exam | Certified Internal Auditor - Part 1, The Internal Audit Activity's Role in Governance, Risk, and Control |
| Number | IIA-CIA-Part1 |
| File Name | IIA.IIA-CIA-Part1.BrainDumps.2018-09-26.310q.tqb |
| Size | 1 MB |
| Posted | Sep 26, 2018 |
| Download | IIA.IIA-CIA-Part1.BrainDumps.2018-09-26.310q.tqb |
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Demo Questions
Question 1
During a payroll audit of a large organization, an auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should:
- Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.
- Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.
- Recommend to the chief audit executive that a fraud investigation be started.
- Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.
Correct answer: B
Question 2
The chief audit executive should periodically report the internal audit activity's purpose, authority, responsibility, and performance, as well as significant risk exposures and control issues, to which of the following?
I. Board of directors.
II. Senior management.
III. Shareholders.
IV. External auditors.
- II only
- I and II only
- I, II, and III only
- I, III, and IV only
Correct answer: B
Question 3
An audit to test the system of controls over the purchase, distribution, and use of radioactive material is being conducted at a company's plants. The process is well documented, and employees in the safety department are very familiar with the department's procedures. Since the purchasing and facilities departments are involved in the process, the auditor is considering reviewing their radioactive material-handling procedures as well. The auditor should:
- Have confidence in the rigorous and detailed safety department procedures, since that department has the main responsibility for radiation safety, and should not use audit time to review other departments.
- Adjust the engagement schedule and budget, if needed, and interview the appropriate individuals in the purchasing and facilities departments to ascertain whether additional controls exist that complement those identified within the safety department.
- Test the controls identified within the safety department; if results are unfavorable, the auditor should consider whether to involve the other departments.
- Defer questions regarding purchasing, facilities, and other departments until audit projects can be scheduled for those departments.
Correct answer: B
