IIA-CIA-Part2 Practice Test

After issuance of the engagement final communication for an audit of an organization's accounts
payable function, which of the following should be sent satisfaction surveys?
I. Manager of disbursements.
II. Controller.
III. Chief operating officer.
IV. Audit committee members.

A.

I only

B.

I and II only

C.

II and III only

D.

II, III, and IV only

In a client satisfaction survey for an internal audit engagement, client management should be
asked to assess which of the following factors?
I. Audit team's knowledge of the audited area.
II. Usefulness of the audit results.
III. Quality of management of the internal audit activity.
IV. Clarity of the scope and objectives of the audit engagement

A.

I and II only

B.

 II and IV only

C.

I, II, and IV only

D.

 I, III, and IV only

In response to an accounts receivable confirmation, a customer indicated that the invoice listed on
the confirmation letter had been paid two months earlier.
This may indicate that:

A.

The receivable was selected for confirmation in error.

B.

The customer is a bad credit risk.

C.

The receivable should be written off.

D.

 Fraudulent activity has occurred.

Which of the following conclusions would be appropriate for a beginning auditor performing an
audit of a payroll department?

A.

Employee taxes have been deducted at the correct rates, and the taxes have been forwarded
to the appropriate government agency.

B.

 Although there is insufficient segregation of duties, the impact is mitigated by compensating
controls.

C.

The payroll computer system should be replaced.

D.

The payroll department staff has the appropriate level of skills.

An audit of customer accounts receivable found that outstanding receivables as a percentage of
revenue had increased significantly during the past two years. The increase was attributed to the
extension of credit, at the urging of the marketing department, to a number of companies that were
not creditworthy. Which of the following would be least useful in monitoring the disposition of this
finding?

A.

Responses from the manager of accounts receivable regarding collection of outstanding
receivables.

B.

Periodic updates from the controller regarding the status of corrective actions.

C.

Information from the credit and marketing personnel assigned the responsibility for reevaluating
credit policies.

D.

Updates from the information technology division regarding implementation of a new accounts
receivable system.