QUESTION: 49 Topic 1, Volume A

If earnings on financial statements for internal use only have been manipulated in the past, an internal auditor is likely to focus on which of the following?

The proper accrual of payables at the end of the interim period.
The timing of revenue recognition and the valuation of inventories.
Whether accounting estimates are reasonable given past actual results.
Whether there have been changes in accounting principles that materially affect the financial statements.

Answer(s): B

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QUESTION: 50 Topic 1, Volume A

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Which of the following procedures would provide the best evidence of the effectiveness of a credit- granting function?

Observe the process.
Review the trend in receivables write-offs.
Ask the credit manager about the effectiveness of the function.
Check for evidence of credit approval on a sample of customer orders.

Answer(s): B

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QUESTION: 51 Topic 1, Volume A

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Which of the following best describes how the increased use of computerization may impact an auditor's assessment of the risk of fraud?

Access to assets may be available to information systems personnel as well as to computer users.
Computer controls are generally less effective than human review.
Overrides of key controls may require less collaboration.
Audit trails are less effective.

Answer(s): A

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QUESTION: 52 Topic 1, Volume A

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An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if.

The auditor notes strong indicators of a specific fraud involving this account.
The company has relatively stable operations which have not changed much over the past year.
The auditor would like to identify large,unusual,or non-recurring transactions during the year.
The operating expenses vary in relation to other operating expenses,but not in relation to revenue.

Answer(s): A

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Free IIA-CIA-Part1 Exam Braindumps (page: 14)

QUESTION: 49 Topic 1, Volume A

QUESTION: 50 Topic 1, Volume A

QUESTION: 51 Topic 1, Volume A

QUESTION: 52 Topic 1, Volume A

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