Question 1

During an assurance engagement, an internal auditor discovered that a sales manager approved numerous sales contracts for values exceeding his authorization limit. The auditor reported the finding to the audit supervisor, noting that the sales manager had additional new contracts under negotiation. According to IIA guidance, which of the following would be the most appropriate next step?

Options :

A : The audit supervisor should include the new contracts in the finding for the final audit report.

B : The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.

C : The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.

D : The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.

Answer: B

Question 2

A chief audit executive's report to the board showed a significant trend of recent aud4s going over planned budgeted hours. Which of the following factors could cause this trend?

Options :

A : Poor engagement supervision

B : ineffective board reporting

C : Untimely observation follows up and closure

D : Limited staff resources

Answer: A

Question 3

What is the primary reason that audit supervision includes approval of the engagement report?

Options :

A : To ensure the objectives of the area under review are met.

B : To ensure senior management supports the report-s conclusions.

C : To ensure report style and grammar are appropriate.

D : To ensure report findings are substantiated.

Answer: D

Question 4

Which of the following best describes the four components of a balanced scorecard?

Options :

A : Customers, innovation, growth, and internal processes.

B : Business objectives, critical success factors, innovation, and growth.

C : Customers, support, critical success factors, and learning.

D : Financial measures, learning and growth, customers, and internal processes.

Answer: D

Question 5

An internal auditor is conducting an initial risk assessment of an audit area and wants to assess management's compliance with privacy laws for safeguarding customer information stored on the organization's servers. Which course of action is appropriate for this phase of the engagement?

Options :

A : Solicit the services of a specialist information systems auditor

B : Obtain the most current approved copies of the organization-s privacy policy

C : Consult with legal counsel about new privacy laws to establish appropriate criteria

D : Consider the detection risk of noncompliance with the laws

Answer: B

Free IIA-CIA-Part2-3P Mock Exam – Practice Online Confidently

Buying Options: