Exam Dumps VCE

QUESTION 122
Why is a code of ethics for the internal audit profession necessary?

QUESTION 123
An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

QUESTION 124
Which of the following is correct regarding the implementation of a quality assurance and improvement program for the internal audit function?

QUESTION 125
An auditor for a large wholesaler is evaluating the controls over the approval and oversight of credit sales. Which of the following procedures would be a control weakness?

QUESTION 126
A receiving department receives copies of purchase orders for use in identifying and recording inventory receipts.
The purchase orders list the name of the vendor and the quantities of the materials ordered.
A possible error that this system could allow is:

QUESTION 127
Which of the following would be the most effective action for an internal audit activity to take in order to assist in improving an organization’s ethical climate?
I. Review formal and informal processes within the organization that could promote unethical behavior.
II. Conduct surveys of employees, suppliers, and customers regarding ethics.
III. Assess the employees’ knowledge of and compliance with the organization’s code of conduct.

QUESTION 128
A bank uses a risk analysis matrix to quantify the relative risk of auditable entities. The analysis involves rating auditable entities on risk factors using a scale of 1 to 10, with 10 representing the greatest risk. A partial list of risk factors and the ratings given to three of the bank’s departments is provided below:
Department Risk Factor A B C Control structure 9 5 7
Nature of assets in department 2 7 9
Dollar value of assets 6 6 8
Complexity of transactions 3 4 8
Which of the following statements regarding risk in the departments is true?

QUESTION 129
Which of the following data collection strategies systematically tests the effects of various factors on an outcome?

QUESTION 130
An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims. Which of the following methods would be most effective and efficient in completing this task?

QUESTION 131
One of an organization’s quality objectives is to reduce the amount of rework needed in the production cycle.
Which of the following controls would be the least effective in achieving this objective?

QUESTION 132
The main reason to establish internal controls in an organization is to:

QUESTION 133
In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers’ accounts?

QUESTION 134
When using a risk assessment model to develop audit plans, it is essential that the chief audit executive take into account the:

QUESTION 135
Which of the following must be in existence as a precondition to developing an effective system of internal controls?

QUESTION 136
The internal audit supervisor is reviewing the workpapers prepared by the staff. According to the Standards, which of the following statements regarding workpaper supervision is not true?

QUESTION 137
A retail sales company has discontinued a product that normally sold for $100. During the first month of a sale of the product, a 20 percent discount was given. Later that sale price was reduced by an additional 40 percent.
What was the overall discount from the original selling price?

QUESTION 138
The organization’s internal audit charter was last updated six years ago. To update the charter, which of the following actions is most appropriate for the chief audit executive to take?

QUESTION 139
Which of the following scenarios best demonstrates the application of internal audit proficiency?

QUESTION 140
Which of the following is not true with regard to the internal audit charter?

QUESTION 141
During the planning phase of an audit of suspected overbilling on contracts for security services, an auditor should perform all of the following except:

QUESTION 142
According to IIA guidance, which of the following objectives of an assurance engagement for the organization’s risk management process is valid?

QUESTION 143
Which of the following statements is not true about red flags?