IIA-CIA-Part1 Practice Test

Which of the following is not a benefit of using information technology in solving audit problems?

A.

It helps reduce audit risk.

B.

It improves the timeliness of the audit engagement.

C.

It increases audit opportunities.

D.

It improves the auditor's judgment.

An audit of the quality control department is being planned. Which of the following would
least likely be used in the preparation of a preliminary survey questionnaire?

A.

An analysis of quality control documents.

B.

The permanent audit file.

C.

The prior audit report.

D.

Management's charter for the quality control department.

In advance of a preliminary survey,a chief audit executive sends a memorandum and
questionnaire to the supervisors of the department to be audited. What is the most likely
result of that procedure?

A.

It creates apprehension about the audit engagement.

B.

 It involves the engagement client's supervisory personnel in the audit.

C.

It is an uneconomical approach to obtaining information.

D.

It is only useful for audits of distant locations.

Which of the following lists the audit activities in the order in which they would generally be
completed during a preliminary survey?
I. Write detailed audit procedures.
II.Identify client objectives,goals,and standards.
III.Identify risks and controls intended to prevent associated losses.
IV.Determine relevant engagement objectives.

A.

II,I,IV,III.

B.

II,III,IV,I.

C.

III,IV,II,I.

D.

II,IV,I,III.

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 auditorshould:

A.

Continue to follow the engagement program because the engagement scope and
objectives have already been discussed with management.

B.

Review the engagement program to ensure testing of direct deposits to employee bank
accounts is adequately covered.

C.

Recommend to the chief audit executive that a fraud investigation be started.

D.

Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.