CIA Challenge Exam IIA-ACCA Release Date

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Question 48

During an assurance engagement, an internal auditor discovered that a sales manager approved numerous sales contracts for values exceeding his authorization limit. The auditor reported the finding to the audit supervisor, noting that the sales manager had additional new contracts under negotiation. According to IIA guidance, which of the following would be the most appropriate next step?

Options:

The audit supervisor should include the new contracts in the finding for the final audit report.

The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.

The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.

The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.

Question 49

According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization's cash disbursements process?

Options:

The accounts payable supervisor, accounts payable manager, and controller.

The accounts payable manager, purchasing manager, and receiving manager.

The accounts payable supervisor, controller, and treasurer.

The accounts payable manager, chief financial officer, and audit committee.

Question 50

Which of the following evaluation criteria would be the most useful to help the chief audit executive determine whether an external service provider possesses the knowledge, skills, and other competencies needed to perform a review?

Options:

The financial interest the service provider may have in the organization.

The relationship the service provider may have had with the organization or the activities being reviewed.

Compensation or other incentives that may be applicable to the service provider.

The service provider's experience in the type of work being considered.

Question 51

According to IIA guidance, which of the following would not be a consideration for the internal audit activity (IAA) when determining the need to follow-up on recommendations?