IIA-CIA-Part2 Practice Test

Which of the following factors would increase the confidence level in a variables sampling plan?
I. A larger sample size.
II. A stratified sample.
III. A larger standard deviation.

A.

I and II only

B.

I and III only

C.

 II and III only

D.

I, II, and III

If an auditor is sampling to test compliance with a particular company policy, which of the following
factors should not affect the allowable level of sampling risk?

A.

The experience and knowledge of the auditor.

B.

The adverse consequences of noncompliance.

C.

The acceptable level of risk of making an incorrect audit conclusion.

Which of the following describes an internal auditor's responsibilities to include audit procedures to
detect fraud in audits of a multinational organization?

A.

International Accounting Standards require the internal auditor to include audit procedures
which would detect fraud if it would cause a material misrepresentation of the financial statements.

B.

 Internal auditors do not have any specific responsibilities with respect to including fraud-related
audit procedures.

C.

Proper audit procedures, when carried out with due professional care, will guarantee that fraud,
if present, will be detected.

D.

 If significant control weaknesses are detected, additional tests should be directed toward other
indicators of fraud.

An appliance repair company is considering relocating the center that houses its service vehicles.
An internal auditor wants to determine the potential reduction in average miles driven by the
service vehicles if the center is relocated. Which of the following statistical sampling methods
would be most appropriate for this test?

A.

Attributes sampling.

B.

Discovery sampling.

C.

Probability-proportional-to-size sampling.

D.

Mean-per-unit sampling.

Monetary-unit sampling is most useful when the internal auditor:

A.

Is testing the accounts payable balance.

B.

Cannot cumulatively arrange the population items.

C.

Expects to find several material errors in the sample.

D.

Is concerned with overstatements.