IIA-CIA-Part2 Practice Test

Recommendations should be included in the audit report in order to:

A.

Provide management with options for addressing audit findings.

B.

Ensure that audit findings are resolved in the manner suggested by the auditor.

C.

Minimize the amount of time required to correct audit findings.

D.

Ensure that audit findings are addressed by management

Which of the following is not relevant when developing recommendations for inclusion in audit
reports?

A.

Feasibility.

B.

Cost of implementation.

C.

Underlying causes.

D.

 Timing of follow-up.

As a result of a recent discovery of false information on employment applications, an internal
auditor has reviewed hiring procedures. Which of the following represents a weakness in the
control system?
I. Applicants are not required to have their signed applications legally authenticated.
II. Applicants' educational information is not validated with the educational institution before
employment is offered.
III. Information related to applicants' long-term work history is not validated before employment is
offered.

A.

III only

B.

I and II only

C.

II and III only

D.

I, II, and III

Which of the following must an auditor establish in order to demonstrate that fraud has occurred?

A.

Monetary damage to the victim.

B.

The suspect's intent.

C.

Existence of an internal control deficiency.

D.

Evidence of collusion.

Which of the following would be the least important reason for a company to merge with another
company?

A.

To diversify risk.

B.

As a response to new government policy.

C.

To reduce labor costs.

D.

To increase stock prices.