IIA-CIA-Part2 Practice Test

Which of the following factors could interfere with effective problem solving by an internal auditor?
I. Reacting to previous experiences with clients.
II. Focusing only on the most likely cause.
III. Correcting the symptoms of problems.

A.

 I only

B.

III only

C.

I and II only

D.

 I, II, and III

A company owns a machine that will produce 100 light switches in four hours. Due to increased
demand, a second machine capable of producing 100 light switches in three hours has been
added.
Approximately how many hours will it take to produce 100 light switches using both machines
working together?

A.

7.0

B.

3.5

C.

 1.7

D.

0.58

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?

A.

60 percent.

B.

52 percent.

C.

48 percent.

D.

30 percent

A recent survey indicated that residents of a small town take the train to a nearby city eight times
per month, on average. The same survey showed that the number of train trips that a resident
takes per month (y) is determined by the number of days per month that the resident works in the
nearby city (x), according to the equation: y = 2 + 2x. A person who never works in the nearby city
is expected to take the train:

A.

Zero times per month.

B.

Two times per month.

C.

Four times per month.

D.

Eight times per month.

A manager of one of a retailer's several retail outlets is stealing cash from cash sales, recording
the sales as accounts receivable, and subsequently writing off the fictitious accounts receivable as
bad debts. Which of the following comparisons would be most effective in signaling the possibility
of such a fraud?

A.

Bad debt expense as a percentage of sales, compared to that of the other outlets.

B.

Bad debt expense as a percentage of sales, compared to that of previous years.

C.

Percentage of past-due accounts receivable, compared to that of the other outlets.

D.

Percentage of past-due accounts receivable, compared to that of previous years