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IIA Practice of Internal Auditing Sample Questions (Q355-Q360):

During an audit of a major metropolitan museum, an auditor was unable to locate selected items from the museum's collection. The director of the museum informed the auditor that the upcoming replacement of the museum's inventory tracking system would address the auditor's concerns. What follow-up activity should the auditor propose?

  • A. Schedule an audit of the museum's security systems to determine if theft is a problem.
  • B. Receive periodic feedback from museum staff regarding the status of the system implementation.
  • C. Monitor the system implementation and schedule a follow-up review once the new system is in place.
  • D. Determine whether the items are indeed missing and assess the ability of the new system to remedy the problem.

Answer: D

The best method for assessing the relative importance of risk factors is to:

  • A. Use data from an independent source.
  • B. Change the rating of the factors from a 1-3 scale to a 1-5 scale.
  • C. Assign weights to the factors based on the comparative impact.
  • D. List the risk factors in a priority order.

Answer: C

Questions used to interrogate individuals suspected of fraud should:

  • A. Cover more than one subject or topic.
  • B. Direct the individual to a desired answer.
  • C. Move from general to specific.
  • D. Adhere to a predetermined order.

Answer: C

Which of the following is not likely to be included as an audit step when assessing vendor performance policies?

  • A. Determine whether the balances owed to vendors are correct.
  • B. Determine whether agreed-upon lot sizes were sent by vendors.
  • C. Determine whether only authorized items were received from vendors.
  • D. Determine whether the quality of the goods purchased from the vendors has been satisfactory.

Answer: A

Section: Volume C

Which of the following items should be addressed in an organization's privacy statement?
I. Intended use of collected information.
II. Data storage and security.
III. Network/infrastructure authentication controls.
IV. Data retention policy of the organization.
Parties authorized to access information.

  • A. I and II only
  • B. I, II, and V only
  • C. II, III, IV, and V only
  • D. I and IV only

Answer: B

Section: Volume B


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