QUESTION: 29

Laura is an accounts clerk. She is supposed to sign each invoice as evidence that she has conducted checks against supporting documents. Sometimes Laura signs invoices without making these checks. Terry is a member of the internal audit team. Terry has been told to conduct compliance tests on whether Laura is checking the invoices properly.
Which of the following would give Terry a false sense of assurance that Laura's checks have been operating?

Terry examined a sample of invoices to make sure that they had been signed by Laura. All had been signed.
Terry worked at a spare desk in the accounts department and quietly watched Laura without telling her. She checked every invoice carefully while Terry was present.
Terry selected a sample of purchase invoices and compared each to the supporting documents that Laura is supposed to review. Every one of Terry's invoices was supported by the related documents.
Terry asked Laura a series of open-ended questions about the operation of the purchases system.
She did not mention anything about detailed checks of invoices against documents.
Terry reviewed a sample of invoices for purchases of plant and equipment and found that Laura had not signed them. Laura explained that she believed that those were authorised by someone else, although the accounts manual indicates that it was her responsibility.

Answer(s): A,B,C

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QUESTION: 30

DRAG DROP
The list below has duties performed by risk managers and internal auditors. Show who would carry out the duties assuming the company has both risk managers and internal auditors.

See Explanation section for answer.

Answer(s): A

Explanation:

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QUESTION: 31

HJK is a retailer, with more than 40 shops around the country. The directors suspect that a serious fraud has occurred at one of the branches and a team of internal auditors has been sent to investigate.
An analytical review investigation shows that sales revenue is in line with budget, but overtime payments to shop staff exceed budget by 20%.
How should the internal audit team proceed?

Conduct additional detailed testing on overtime payments.
Conduct additional detailed testing of all figures.
Increase the evaluation of inherent risk.
Increase the evaluation of control risk.

Answer(s): A

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QUESTION: 32

With regard to the internal audit department, which TWO of the following statements are correct?

The internal audit department should co-opt a manager from the department it is auditing onto the team in order to ensure it can follow the processes applied in that department.
The internal audit department should report directly to the board of directors, especially if it suspects a director has circumvented any internal controls.
The internal audit department should make recommendations on actions to be taken following any engagement within a department.
The internal audit department should make recommendations on how to improve the control systems within a department following any engagement within that department.
The internal audit department should follow a planned work schedule which is reviewed at least annually.

Answer(s): C,E

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Free CIMAPRO19-P03-1 Exam Braindumps (page: 9)

QUESTION: 29

QUESTION: 30

Explanation:

QUESTION: 31

QUESTION: 32

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