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IIA Practice of Internal Auditing Sample Questions (Q139-Q144):

NEW QUESTION # 139
An internal auditor is assigned to validate calculations on the organization's building application As pad of the test the internal auditor is required to use an automated audit tool to simulate transactions for testing. Which of the following would most appropriately be used for this purpose?

• A. Utility software
• B. Audit expert systems
• C. Generalized audit software.
• D. integrated test facilities

Answer: D
NEW QUESTION # 140
Which of the following would not include recommendations for process improvements?

• A. Internal audit engagement.
• B. Forensic investigation.
• C. Due diligence engagement.
• D. Consulting engagement.

Answer: C Explanation:
Section: Volume D
NEW QUESTION # 141
An organization's policies allow buyers to authorize expenditures up to $50,000 without any other approval.
Which of the following audit procedures would be most effective in determining if fraud in the form of payments to fictitious companies has occurred?

• A. Use generalized audit software to list all purchases over $50,000 to determine whether they were properly approved.
• B. Use generalized audit software to take a random sample of all expenditures under $50,000 to determine whether they were properly approved.
• C. Use generalized audit software to select a sample of paid invoices to new vendors and examine evidence that shows that services or goods were received.
• D. Develop a snapshot technique to trace all transactions by suspected buyers.

Answer: C
NEW QUESTION # 142
While conducting an audit of a third party's Web-based payment processor, an internal auditor discovers that a programming error allows customers to create multiple accounts for a single mailing address. Management agrees to correct the program and notify customers with multiple accounts that the accounts will be consolidated. Which of the following actions should the auditor take?
1. Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.
2. Evaluate the adequacy and effectiveness of the corrective action proposed by management.
3. Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.
4. Submit management's plan of action to the external auditors for additional review.

• A. 2 and 3
• B. 1 and 4
• C. 3 and 4
• D. 1 and 2

Answer: D Explanation:
Section: Volume E
Explanation/Reference:
NEW QUESTION # 143
When interviewing an individual suspected of fraud, what type of questions would be asked after the introductory questions?

• A. Admission-seeking questions.
• B. Informational questions.
• C. Assessment questions.
• D. Closing questions.

Answer: B Explanation:
Section: Volume B
NEW QUESTION # 144
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