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IIA Essentials of Internal Auditing Sample Questions (Q136-Q141):

NEW QUESTION # 136
Which of the following statements is true regarding occupational fraud?

A. An employee who diverts the organization's purchases for personal use is demonstrating asset misappropriation
B. An employee who intentionally omits negative information in the financial statement disclosures is demonstrating an example of corruption
C. An employee who made an error in estimating losses may have committed fraud even if the error was not intentional
D. An employee who creates a denial of service in the organization's computer systems is committing asset misappropriation

Answer: A

NEW QUESTION # 137
Continuing Professional Education (CPE) hours for Certified Internal Auditors may be achieved by:

A. Obtaining experience on the job.
B. Attending audit staff meetings.
C. Verifying that all completed audit tests are fully documented.
D. Publishing an article on the company's internal audit department.

Answer: D

NEW QUESTION # 138
Which of the following is not an appropriate role for internal auditors after a disaster occurs?

A. Recommend future improvements to the entity's business continuity plan.
B. Correct deficiencies of the entity's business continuity plan.
C. Monitor the effectiveness of the recovery and control of operations.
D. Assist in the identification of lessons learned from the disaster and the recovery operations.

Answer: B

NEW QUESTION # 139
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. 1, 2, and 3
B. 2, 3, and 4
C. 2 and 3 only
D. 1 and 4

Answer: B

NEW QUESTION # 140
An internal auditor for a large bank is reviewing the collectability of a loan that is secured by real property. The best evidence of the loan's collectability would be:

A. A properly completed and signed loan application form.
B. The borrower's confirmation of the loan balance.
C. A recent independent appraisal of the value of the real property.
D. A document showing the loan committee's approval of the loan.

Answer: C

NEW QUESTION # 141
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