IIA_CIA_PART2 questions • Exam prepare

Exam contains 718 questions

Page 15 of 120

Question 85 🔥

The internal audit activity (IAA) wants to measure its performance related to the quality of audit recommendations. Which of the following client survey questions would best help the IAA meet this objective?

Which database solution meets these requirements?

A. Were audit findings relevant and useful to management?

B. Does the audit report format present issues clearly and concisely?

C. Does the IAA work with a high degree of professionalism and objectivity?

D. Were the findings reported in a timely manner?

Discussion of the question

Question 86 🔥

A company used simple regression analysis to analyze maintenance costs against machine hours (MH) for a 26-week period when the plant was in full operation.The regression yielded the following estimated cost function:Maintenance Cost = $60 + $0.25/MHThe regression analysis also generated a coefficient of determination (R2), or goodness of fit, of 0.85. Which of the following statements regarding this regression analysis is appropriate?

Which database solution meets these requirements?

A. This regression can be used to determine the maintenance cost for any period at any activity level by substituting the machine hours in the equation.

B. The $60 component represents the best estimate of fixed maintenance costs for the company in a shutdown situation.

C. The $0.25 component is the slope coefficient of the cost estimate and represents the average variable maintenance cost per machine hour.

D. The coefficient of determination of R2 = 0.85 indicates that the goodness of fit is poor because the value is close to the maximum value of one.

Discussion of the question

Question 87 🔥

A limitation of using ratio analysis in an audit engagement is that it:

Which database solution meets these requirements?

A. Often uses financial information provided by management which has not been reviewed for reliability and validity.

B. Is an expensive method of testing.

C. Requires computer software in order to develop meaningful interpretations of data.

D. Is useful only when comparisons can be made across other industries.

Discussion of the question

Question 88 🔥

The chief audit executive's responsibility regarding control processes includes:

Which database solution meets these requirements?

A. Assisting senior management and the audit committee in the development of an annual assessment about internal control.

B. Overseeing the establishment of internal control processes.

C. Maintaining the organization's governance processes.

D. Ensuring that the internal audit activity assesses all control processes annually.

Discussion of the question

Question 89 🔥

Which of the following examples of audit evidence is the most persuasive?

Which database solution meets these requirements?

A. Real estate deeds, which were properly recorded with a government agency.

B. Canceled checks written by the treasurer and returned from a bank.

C. Time cards for employees, which are stored by a manager.

D. Vendor invoices filed by the accounting department.

Discussion of the question

Question 90 🔥

A code of ethics within the internal auditing profession is necessary in order to:

Which database solution meets these requirements?

A. Reduce the likelihood that members of the profession will be sued for substandard work.

B. Ensure that all members of the profession perform at approximately the same level of competence.

C. Provide guidance to internal auditors in their service to others.

D. Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.

Discussion of the question

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iia IIA_CIA_PART2

Exam contains 718 questions

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