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IIA Essentials of Internal Auditing Sample Questions (Q291-Q296):

NEW QUESTION # 291
Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?

• A. It considers tolerable deviation rate more effectively than does statistical sampling.
• B. Lesser evidence is required to support a conclusion than for statistical sampling.
• C. Sampling risk will be accurately quantified through non-statistical sampling.
• D. Non-statistical sample results must be projected to the population.

Answer: D
NEW QUESTION # 292
Allegations have been made that an organization's share price has been manipulated.
Which of the following would provide an internal auditor with the most objective evidence in this case?

• A. Former members of management.
• B. Large customers of the organization.
• C. Former financial consultants.
• D. Major shareholders of the organization.

Answer: C Explanation:
Section: Volume E
NEW QUESTION # 293
Which of the following statements describes a control weakness?

• A. The purchasing agent in a personal capacity invests in a publicly-traded mutual fund that lists the stock of one of the company's suppliers in its portfolio.
• B. Pre-numbered blank purchase orders are secured within the purchasing department.
• C. Purchasing procedures are well designed and are followed even when the purchasing supervisor wishes to direct otherwise.
• D. Normal operational purchases fall in the range from $500 to $1,000, with a single signature required for purchases over $1,000.

Answer: D
NEW QUESTION # 294
Which of the following documents is most appropriate in promoting the objectivity of the internal audit activity?

• A. Usage of IT system policy.
• B. Personal responsibility policy.
• C. Risk management framework.
• D. Acceptance of gifts policy.

Answer: D
NEW QUESTION # 295
A company's chief audit executive determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following actions would be the least acceptable?

• A. Notify the audit committee of the problem and assign the most competent auditors to perform the audit engagement.
• B. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.
• C. Determine the requisite knowledge needed and obtain the proper training for auditors if such training is available within the appropriate time framework outlined by the audit committee.
• D. Notify the audit committee of the problem and consult with them regarding outsourcing the audit engagement to a qualified external auditing firm.

Answer: A Explanation:
Section: Volume C
NEW QUESTION # 296
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