Valid Certified Internal IIA-CIA-Part1 Dumps Ensure Your Passing [Q40-Q56]

Q40. The work papers for an audit of hazardous-materials handling and disposal at an engineering research facility provide evidence that the following procedures were performed.
Drums of hazardous waste not yet shipped off-site were inventoried. The physical count agreed with

the company’s inventory records.
A sample of hazardous-waste shipments received at the disposal site was compared to bills of lading

and company records. No errors were detected.
The audit staff observed engineering personnel during the handling of hazardous materials. No

company policy violations were noted.
The reconciliation of waste drums to the inventory records provides evidence that:

Q41. Which of the following factors affects the control risk of a company?

Q42. With regard to the internal audit activity’s quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?

Q43. The chief audit executive (CAE) wants to ensure that there are sufficient resources available to fulfill the responsibilities of the internal audit activity in the coming year. Which statement describes the most logical sequence of events for the CAE to undertake in order to achieve this objective?

Q44. An internal auditor for a large bank is reviewing thecollectabilityof a loan that is secured by real property. The best evidence of the loan’scollectabilitywould be:

Q45. A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

Q46. An internal auditor is testing the controls of a large and complex food production process where quality assurance is critical. Management provides process charts and documentation, but the auditor quickly determines that this information is incomplete and out of date. Which of the following would be the most appropriate course of action for the auditor to follow?

Q47. According to the COSO framework, which of the following is not a principle of internal control?

Q48. According to the International Professional Practices Framework, which of the following is the appropriate division of responsibilities for the coordination of internal and external audit efforts?
I. Oversight of Work
Coordination of Activities
Chief audit executive
Senior management
II. Board
Chief audit executive
III. Chief financial officer
Chief audit executive
IV. Board
Chief financial officer

Q49. Which of the following statements is the most appropriate for a chief audit executive to include in the internal audit policy manual in order to promote objectivity?

Q50. An internal auditor has taken an attributes sample of a bank’s existing loan portfolio. Out of a sample of 60 loans, the auditor found:
Four that were not properly collateralized.
Five that were not in compliance with bank policies (other than lack of collateralization).
Four that were part of a related-party group, but were set up as separate loan entities.
Of the 60 loans selected in the sample, these errors were noted on a total of 10 loans.
Several loans had multiple problems.
Which of the following conclusions can the auditor reach from these observations?
1. There is sufficient evidence that fraudulent activity is taking place by one or more of the bank’s lending officers.
2. The financial statements will be misstated as a result of these actions.
3. There are significant noncompliance audit findings that should be reported.

Q51. During an audit engagement, an internal auditor finds that management is not complying
with previous commitments made to the external auditors. However, the auditor determines management’s actions to be justified due to significant changes in the business. The best course of action for the auditor to take would be to:

Q52. Which of the following would be most helpful to measure whether an internal audit activity successfully provides risk-based assurance?

Q53. An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts as bad debts. Which of the following irregularities is the most likely cause of the auditor’s suspicion?

Q54. Which of the following actions would be considered a violation of the Standards?
I.Drafts of engagement communications were reviewed with the audit client to obtain input. The client’s comments were considered when developing the engagement final communication.
II.An auditor participated as part of a development team to review the control procedures to be incorporated into a major computer application under development.
III.Given limited resources,the chief audit executive performed a risk analysis to determine which functions to audit.

Q55. An organization’s sales professionals are potentially abusing the use of cellular phones, resulting in an alarming increase in telephone expenses. Which of the following controls is least likely to curb this abuse?

Q56. During a payroll audit of a large organization, an auditor noted that the assistant personnel director is responsible for many aspects of the computerized payroll system, including adding new employees in the system; entering direct-deposit information for employees; approving and entering all payroll changes; and providing training for system users. After discussions with the director of personnel, the auditor concluded that the director was not comfortable dealing with information technology issues and felt obliged to support all actions taken by the assistant director. The auditor should: