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IIA-CIA-Part2 – Certified Internal Auditor - Part 2, Conducting the Internal Audit Engagement

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Showing 16–18 of 20 questions

Question 16 (Volume A)

Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?

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    The standard of living of one of the purchasing agents has increased.
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    The internal control structure has significant weaknesses.
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    The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.
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    The cost of goods procured seems to be excessive in comparison with previous years.
Question 17 (Volume E)

The final engagement communication contains the following observation:

"The internal auditor discovered that three of the 10 contracts reviewed failed to meet the organization's competitive bidding requirements. Management explained that senior management deemed these purchases to be critical and awarded them as sole-source."

Which of the following components is missing in the documentation of the observation?

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    Criteria.
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    Effect.
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    Condition.
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    Cause.
Question 18 (Volume A)

Which of the following is the best problem-solving technique to use when analyzing performance and cost?

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    Value analysis.
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    Attribute listing.
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    Brainstorming.
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    Component analysis.