IIA-CIA-Part1 Practice Test

An organization has developed a large database that tracks employees,employee
benefits,payroll deductions,job classifications,and other similar information. In order to test
whether data currently within the automated system are correct,an auditorshould:

A.

Use test data and determine whether all the data entered are captured correctly in the
updated database.

B.

Select a sample of data to be entered for a few days and trace the data to the updated
database to determine the correctness of the updates.

C.

 Use generalized audit software to provide a printout of all employees with invalid job
descriptions. Investigate the causes of the problems.

D.

Use generalized audit software to select a sample of employees from the database.
Verify the data fields.
 

An internal auditor plans to use an analytical review to verify the correctness of various
operating expenses in a division. The use of an analytical review as a verification technique
would not be a preferred approachif.

A.

The auditor notes strong indicators of a specific fraud involving this account.

B.

The company has relatively stable operations which have not changed much over the past year.

C.

The auditor would like to identify large,unusual,or non-recurring transactions during the year.

D.

The operating expenses vary in relation to other operating expenses,but not in relation to revenue.

Which of the following would be a violation of the IIA Code of Ethics?

A.

Reporting information that could be damaging to the organization,at the request of a court of law.

B.

Including an issue in the final audit report after management has resolved the issue.

C.

Participating in an audit engagement for which the auditor does not have the necessary
experience or training.

D.

Accepting a gift that is a commercial advertisement available to the public.

An organization has a policy requiring two signatures on all checks written for amounts in
excess of $10,000. When evaluating controls over disbursements,an auditor would
conclude that a greater risk existsif.

A.

The auditor located two checks for $9,000 each that contained one authorized signature.

B.

The $10,000 was an immaterial amount to the organization and very few cash
disbursements required an amount in excess of $10,000.

C.

The director of accounting was not one of the authorized signers.

D.

There were several instances in which successively numbered checks for amounts
between $5,000 and $10,000 were made payable to the same vendor.

An organization's accounts payable function improved its internal controls significantly after
it received an unsatisfactory audit report.
When planning a follow-up audit of the function,what level of detection risk should be
expected if the audit and sampling procedures used are unchanged from the prior audit?

A.

Detection risk is lower because control risk is lower.

B.

Detection risk is lower because control risk is higher.

C.

Detection risk is higher because control risk is lower.

D.

Detection risk is unchanged although control risk is lower.