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Free CIA-II Exam Braindumps
Certified Internal Auditor Questions 166–170 (page: 35)

Updated On: 10-Feb-2026
Page 35 of 103
PDF with 508 Questions

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?

  1. Responses from the manager of accounts receivable regarding collection of outstanding receivables.
  2. Periodic updates from the controller regarding the status of corrective actions.
  3. Information from the credit and marketing personnel assigned the responsibility for reevaluating credit policies.
  4. Updates from the information technology division regarding implementation of a new accounts receivable system.

Answer(s): D



During an audit of a major metropolitan museum, an auditor was unable to locate selected items from the museum's collection. The director of the museum informed the auditor that the upcoming replacement of the museum's inventory tracking system would address the auditor's concerns.
What follow-up activity should the auditor propose?

  1. Receive periodic feedback from museum staff regarding the status of the system implementation.
  2. Monitor the system implementation and schedule a follow-up review once the new system is in place.
  3. Determine whether the items are indeed missing and assess the ability of the new system to remedy the problem.
  4. Schedule an audit of the museum's security systems to determine if theft is a problem.

Answer(s): C



An audit of a Web-based third-party payment processor determined that a programming error enabled customers to create multiple accounts for each mailing address. This caused problems
during the processing of credit card transactions. Management agreed to correct the program and notify customers with multiple accounts that the accounts would be consolidated. What should the auditor do in response?

  1. Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.
    II. Evaluate the adequacy and effectiveness of the corrective action proposed by management.
    III. Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.
    IV. Do nothing because management has agreed to address the problem.
  2. III only
  3. IV only
  4. I and II only
  5. II and III only

Answer(s): D



A company's cellular phone costs vary significantly by sales representative and by month. Which of the following would be the most appropriate approach for a consulting project concerning this issue?

  1. Control self-assessment involving sales representatives.
  2. Benchmarking with other cellular phone users.
  3. Business process review of cellular phone needs.
  4. Performance measurement and design of the budgeting process.

Answer(s): C



Which of the following would be the most effective method to prevent installation of new equipment that does not meet environmental permit requirements, or to prevent modification of current processes in such a way that they no longer meet permit requirements?

  1. Require that the environmental compliance department perform regular inspections of the manufacturing facility to identify new equipment or process modifications in progress.
  2. Rely on annual inspections by various regulatory agencies to identify equipment or processes that require a permit.
  3. Require that the staff of the environmental compliance department attend monthly safety meetings in different parts of the facility so that they can hear directly from the workers about any changes.
  4. Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.

Answer(s): D



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