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IIA Practice of Internal Auditing Sample Questions (Q89-Q94):
NEW QUESTION # 89
Which of the following parties is accountable for ensuring adequate support for conclusions and opinions readied by the internal audit activity while relying on external auditors' work?
- A. Board of directors
- B. Chief audit executive
- C. External auditors
- D. Senior management
Answer: B
NEW QUESTION # 90
What type of analysis is performed when an auditor tests for unusual variations in information by comparing the number of employees working at a factory site with the direct cost of production each month over a period of one year?
- A. Trend analysis.
- B. Horizontal analysis.
- C. Regression analysis.
- D. Ratio analysis.
Answer: C
NEW QUESTION # 91
In response to an accounts receivable confirmation, a customer indicated that the invoice listed on the confirmation letter had been paid two months earlier.
This may indicate that:
- A. The receivable should be written off.
- B. The customer is a bad credit risk.
- C. The receivable was selected for confirmation in error.
- D. Fraudulent activity has occurred.
Answer: D
Explanation:
Section: Volume B
NEW QUESTION # 92
Which of the following best describes the engagement objective in a banking compliance audit?
- A. Assessing whether the business continuity plans implement regulatory requirements
- B. Assessing the cost-efficiency of business continuity plans
- C. Assessing whether the business continuity plans implement best practice recommendations
- D. Assessing the operating effectiveness of the business continuity plans
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
In a compliance audit, the objective is to assess adherence to laws, regulations, or regulatory requirements. For banking compliance, this means verifying whether business continuity plans comply with mandatory regulations (Option B). Options A, C, and D relate to efficiency, best practices, or operations - not compliance.
NEW QUESTION # 93
An internal auditor was reviewing the procurement department's tender documentation for completeness He documented all discrepancies but the procurement manager disagreed with his findings Upon further review, the internal auditor noted that all discrepancies had been corrected in the tender database. Which of the following courses of action would have prevented this situation?
- A. The auditor should have instructed procurement workers that changes to the database during the course of the audit were strictly forbidden
- B. The internal auditor should have created a more thorough work program, which would address audit criteria and potential causes in more detail
- C. The auditor should have ensured the preservation of audit evidence by taking screenshots or extracting tender documents
- D. The auditor should have extracted a list of logs and identified any actions that were executed in the database during the audit
Answer: C
NEW QUESTION # 94
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