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IIA Essentials of Internal Auditing Sample Questions (Q103-Q108):

NEW QUESTION # 103
Human resources and payroll are separate departments. Which of the following combinations would provide the best segregation of duties?

A. Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.
B. Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.
C. Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.
D. Payroll personnel add employees and enter employee bank account numbers but process hours only as approved by the human resources department. Paychecks are
automatically deposited in the employee's bank account.

Answer: A

NEW QUESTION # 104
Which of the following scenarios would most significantly restrict the areas where internal audit could perform assurance services?

A. The internal audit activity reports administratively to the chief financial officer.
B. The internal audit activity reports functionally to the chief financial officer
C. The internal audit activity reports administratively to the CEO and functionally to the audit committee.
D. Regulators mandate specific audit engagements to be included in the audit plan.

Answer: B

NEW QUESTION # 105
During an interview with a data-entry clerk in the human resources department, an internal auditor recognizes a potentially significant weakness with a database system used to track employee performance ratings. Which of the following actions should the auditor take after discovering the weakness?

A. Immediately document the weakness and write a report to the data-entry clerk's superior.
B. Schedule a series of follow-up interviews with the data-entry clerk.
C. Avoid either directly or indirectly confronting the data-entry clerk about the system weakness.
D. Question the data-entry clerk indirectly to help obtain more factual information about the weakness.

Answer: D

NEW QUESTION # 106
An internal auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation. The primary deficiency with the above process is that:

A. The auditor failed to consider the importance of the information offered.
B. A questionnaire was used in a situation where a structured interview should have been used.
C. The engagement program was incomplete.
D. The use of a questionnaire precluded the auditor from documenting other information.

Answer: A

NEW QUESTION # 107
A mature organization recently made some changes to its existing ethics program by implementing a formal code of conduct as well as frequent ethics training for all employees.
Which of the following parties is responsible for oversight of these activities?

A. The board of directors.
B. The internal audit activity.
C. All employees.
D. External auditors.

Answer: A

NEW QUESTION # 108
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