IIA-CIA-Part1 Practice Test

A high-volume retailer of consumer goods has used point-of-sale data to record sales and
update inventory records for several years. When price changes are scheduled,corporate
headquarters downloads a price change file to a computer server system at each store.
Each store's assistant manager is responsible for checking the server for downloads and
running the program that updates the store's price file at the authorized price update time.
In comparison with having headquarters initiate the price update centrally,this approach to
price updating will most likely:

A.

Decrease the risk that customers will be undercharged consistently for sales items.

B.

Decrease the risk that item prices will sometimes be inaccurate.

C.

Increase the risk that customers will be undercharged consistently for sales items.

D.

Increase the risk that item prices will sometimes be inaccurate.

Which of the following factors affects the control risk of a company?

A.

Potential problems like technological obsolescence.

B.

Unusual pressures on management.

C.

Complex accounts that require expert valuations.

D.

Segregation of duties.

Which of the following should be incorporated in a risk management policy?
I.Boundaries and limit structures.
II.Requirements for reporting risk.
III.Risk authorities.

A.

I and IIonly

B.

I and IIIonly

C.

II and IIIonly

D.

I,II,and III.

A bakery chain has a statistical model that can be used to predict daily sales at individual
stores based on a direct relationship to the cost of ingredients used and an inverse
relationship to rainy days. What conditions would an auditor look for as an indicator of
employee theft of food from a specific store?

A.

On a rainy day,total sales are greater than expected when compared to the cost of ingredients used.

B.

On a sunny day,total sales are less than expected when compared to the cost of ingredients used.

C.

Both total sales and cost of ingredients used are greater than expected.

D.

Both total sales and cost of ingredients used are less than expected.

If an internal auditor discloses confidential information in response to a lawsuit,the internal
auditor hasviolated.

A.

The IIA Code of Ethics.

B.

The Standards.

C.

Both the IIA Code of Ethics and the Standards.

D.

Neither the IIA Code of Ethics nor the Standards.