IIA IIA-CIA-Part2 Exam Questions

Question 6 of 724

Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?

Checks are not restrictively endorsed when received.

Only one signature is required on the organization's checks.

One employee handles both accounts receivable and purchase orders.

One employee handles both cash deposits and accounts payable.

Correct Answer: A

Question 7 of 724

An internal auditor is assigned to conduct an audit of security for a local area network (LAN) in the finance department of the organization. Investment decisions, including the use of hedging strategies and financial derivatives, use data and financial models which run on the LAN. The LAN is also used to download data from the mainframe to assist in decisions. Which of the following should be considered outside the scope of this security audit engagement?

Investigation of the physical security over access to the components of the LAN.

The ability of the LAN application to identify data items at the field or record level and implement user access security at that level.

Interviews with users to determine their assessment of the level of security in the system and the vulnerability of the system to compromise.

The level of security of other LANs in the company which also utilize sensitive data.

Correct Answer: D

The primary task of the internal auditor is to evaluate the security of the LAN specific to the finance department where sensitive financial data and models are managed. Examining the physical security, user access controls, and user feedback regarding the system's security are all relevant to this task. However, assessing the security levels of other LANs in the company falls outside the specific scope of auditing the LAN used by the finance department.

Question 8 of 724

An audit of management's quality program includes testing the accuracy of the cost-of-quality reports provided to management. Which of the following internal control objectives is the focus of this testing?

To ensure compliance with policies, plans, procedures, laws, and regulations.

To ensure the accomplishment of established objectives and goals for operations or programs.

To ensure the reliability and integrity of information.

To ensure the economical and efficient use of resources.

Correct Answer: C

Testing the accuracy of cost-of-quality reports provided to management focuses on ensuring the reliability and integrity of information. It is essential that the information contained in such reports is accurate and trustworthy so that management can make informed decisions based on dependable data.

Question 9 of 724

When internal auditors provide consulting services, the scope of the engagement is primarily determined by:

Internal auditing standards.

The audit engagement team.

The engagement client.

The internal audit activity's charter.

Correct Answer: C

Question 10 of 724

A manufacturing process could create hazardous waste at several production stages, from raw materials handling to finished goods storage. If the objective of a pollution prevention audit engagement is to identify opportunities for minimizing waste, in what order should the following opportunities be considered?
I. Recycling and reuse.
II. Elimination at the source.
III. Energy conservation.
IV. Recovery as a usable product Treatment.

V, II, IV, I, III.

IV, II, I, III, V.

I, III, IV, II, V.

III, IV, II, V, I.

Correct Answer: B

In the context of pollution prevention, the most effective approach is often elimination at the source, which involves modifying processes to reduce or eliminate waste production entirely. After elimination, recycling and reuse should be considered, as they prevent waste by turning it into usable materials again. The next step is recovery as a usable product, which involves processing waste to retrieve valuable components. Energy conservation can also play a role in minimizing waste indirectly by making manufacturing processes more efficient. Treatment and disposal are generally considered last resorts since they deal with waste only after it has been generated.