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IIA Essentials of Internal Auditing Sample Questions (Q326-Q331):

NEW QUESTION # 326
Which of the following is not considered one of the most common red flags for perpetrators of fraud?

• A. Experiencing financial difficulty.
• B. Repeat performance issues.
• C. Excessive control issues.
• D. Unusually close association with customers.

Answer: B Explanation:
Section: Volume D
NEW QUESTION # 327
Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1.Acceptance of CAATs findings by entity management.
2.Computer knowledge and expertise of the auditor.
3.Time constraints.
4.Level of audit risk.

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

Answer: D
NEW QUESTION # 328
Which of the following actions would an internal auditor perform primarily during a consulting engagement of a debt collections process?

• A. Performing a walk-through of the debt collections process to determine whether proper segregation of duties exists
• B. Reviewing journal entries for accuracy and completeness.
• C. Advising management on streamlining the recording of accounts receivable.
• D. Comparing the policies and procedures to regulatory collections guidance.

Answer: C
NEW QUESTION # 329
Which of the following is most likely to be an element of an effective compliance program?

• A. The organization obtains as much information as possible when performing background checks on employees.
• B. The program is communicated to employees in a video format on a one-time basis.
• C. The internal audit activity is assigned responsibility for overseeing the program.
• D. The organization uses monitoring systems designed to detect improper activity.

Answer: D Explanation:
Section: Volume B
NEW QUESTION # 330
While performing an accounts payable engagement,a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?
1.Ensure all tests use a random sampling technique. 2.Consider a judgmental approach for the sample size. 3.Assess testing errors through root cause analysis. 4.Ensure that the entire data set is tested.

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

Answer: B
NEW QUESTION # 331
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