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IIA Essentials of Internal Auditing Sample Questions (Q261-Q266):

NEW QUESTION # 261
An organization has a policy requiring two signatures on all checks written for amounts in excess of $10, 000.
When evaluating controls over disbursements, an auditor would conclude that a greater risk exists if.

A. The $10, 000 was an immaterial amount to the organization and very few cash disbursements required an amount in excess of $10, 000.
B. There were several instances in which successively numbered checks for amounts between $5, 000 and
$10, 000 were made payable to the same vendor.
C. The auditor located two checks for $9, 000 each that contained one authorized signature.
D. The director of accounting was not one of the authorized signers.

Answer: B

Explanation:
Section: Volume A
Explanation

NEW QUESTION # 262
An internal auditor is planning an audit of an organization where temporary employees are suspected of receiving pay for hours they have not worked. Which of the following tasks should not be performed at this stage in the audit?

A. Obtaining a copy of the contract between the organizations and the temporary employment agency.
B. Interviewing shift supervisors about their employees' attendance.
C. Interviewing the manager who requested the audit engagement.
D. Preparing an engagement program.

Answer: B

NEW QUESTION # 263
Which of the following organizations has reached the most mature level of corporate social responsibility?

A. An organization that is able to provide goods and services society needs and thus maximizes profit to its owners.
B. An organization that requires its decision makers to act with equity, fairness, and respect for the rights of individuals.
C. An organization that is willing to make contributions not mandated by law or economics and expects no payback.
D. An organization that ensures compliance to legal frameworks of the countries in which it operates and sells its products.

Answer: B

NEW QUESTION # 264
Which of the following would be considered an indicator that an organization's ethics program is not yet well developed?

A. Disciplinary actions for ethics compliance violations are reviewed by the internal audit activity for consistency.
B. The board of directors reviews ethics oversight metrics for violations and compliance.
C. The organization's code of ethics and related compliance policy are reviewed annually for potential updates.
D. Communication of ethics compliance expectations is the responsibility of employees' direct managers.

Answer: D

Explanation:
This indicator suggests that the organization's ethics program might not be well-developed if the responsibility for communicating ethics compliance is decentralized to the level of employees' direct managers without broader oversight or structured programs. Effective ethics programs typically involve centralized communication strategies that ensure consistency and comprehensiveness across the organization.References:
Institute of Internal Auditors (IIA) - Guidance on Developing an Ethics Program

NEW QUESTION # 265
Which of the following best describes the most important criteria when assigning responsibility for specific tasks required in an audit engagement?

A. All auditors assigned an audit task must have the knowledge and skills necessary to complete the task satisfactorily.
B. All audit team members must have the skills necessary to satisfactorily complete any task that will be required in the audit engagement.
C. Tasks must be assigned to the audit team member who is most qualified to perform them.
D. Auditors must be given assignments based primarily upon their years of experience.

Answer: A

Explanation:
Section: Volume A

NEW QUESTION # 266
......

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