QUESTION: 241 Exam Topic: 3, Volume C

During a payroll audit of a large organization, an internal 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:

Continue to follow the engagement program because the engagement scope and objectives have already been discussed with management.
Review the engagement program to ensure testing of direct deposits to employee bank accounts is adequately covered.
Recommend to the chief audit executive that a fraud investigation be started.
Test a sample of payroll changes to ensure that they were approved by the assistant director before being processed.

Answer(s): B

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QUESTION: 242 Exam Topic: 3, Volume C

The most effective procedure to verify compliance with a requirement that materials be purchased from the lowest-priced source is to compare:

Prices paid for selected materials with prices listed on related purchase orders.
Bids obtained for selected purchases with related purchase orders.
Vendors' current prices with prices listed on related purchase orders.
Approved vendor lists with bids obtained for selected purchases.

Answer(s): B

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QUESTION: 243 Exam Topic: 3, Volume C

A major insurance company provides a discount on automobile insurance if the vehicle meets certain safety criteria. Which of the following audit tests would provide an internal auditor with the best evidence that all qualifying insured automobiles are receiving the discount?

Compare the percentage of automobiles receiving discounts this year to that of last year.
Ask managers whether they are aware of the discount criteria and whether they are providing the discount to all qualifying automobiles.
Select a sample of automobiles that are not receiving the discount and determine if they have been properly excluded.
Select a sample of automobiles receiving the discount and determine that the required discount criteria are being met.

Answer(s): C

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QUESTION: 244 Exam Topic: 3, Volume C

Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?

Auditors must be given assignments based primarily upon their years of experience.
All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.
Tasks must be assigned to the audit team member who is most qualified to perform them.
All audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.

Answer(s): B

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Free IIA-CIA-Part2 Exam Braindumps (page: 61)

QUESTION: 241 Exam Topic: 3, Volume C

QUESTION: 242 Exam Topic: 3, Volume C

QUESTION: 243 Exam Topic: 3, Volume C

QUESTION: 244 Exam Topic: 3, Volume C