Free CIA Exam Braindumps (page: 20)

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Which statement most accurately describes how criteria are established for use by internal auditors in determining whether goals and objectives have been accomplished?

  1. Management is responsible for establishing the criteria.
  2. Internal auditors should use professional standards or government regulations to establish the criteria.
  3. The industry in which a company operates establishes criteria for each member company through benchmarks and best practices for that industry.
  4. Appropriate accounting or auditing standards, including international standards, should be used as the criteria.

Answer(s): A



If an engagement client's operating standards are vague and thus subject to interpretation, the auditor should

  1. Seek agreement with the client as to the standards to be used to measure operating performance.
  2. Determine best practices in the area and use them as the standard.
  3. Interpret the standards in their strictest sense because standards are otherwise only minimum measures of acceptance.
  4. Omit any comments on standards and the client's performance in relationship to those standards, because such an analysis would be meaningless.

Answer(s): A



Which of the following does not describe a skill or knowledge necessary to supervise a particular audit engagement?

  1. The ability to review and analyze an engagement program to determine if the proposed audit procedures will result in evidence relevant to the engagement objectives.
  2. The ability to use risk assessment and other judgmental processes to develop an engagement plan and schedule for the department, and present the plan to the audit committee.
  3. The ability to assure that an engagement final communication is supported and accurate relative to the evidence documented in the engagement working papers.
  4. The ability to determine that staff auditors have completed the audit procedures and that engagement objectives have been met.

Answer(s): B



Which of the following statements regarding an internal auditor's responsibility for detecting fraud is not correct?

  1. The auditor should detect fraud if red flags are present.
  2. The auditor should have sufficient knowledge to correctly identify indicators that fraud may have been committed.
  3. The auditor should identify control weaknesses which could allow fraud to occur.
  4. The auditor should evaluate the indicators of fraud sufficiently to determine if a fraud investigation should take place.

Answer(s): A






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