IIA CIA Certification Exam Questions with AI Explanations

QUESTION: 291

Which of the following would be the most effective method to prevent installation of new equipment that does not meet environmental permit requirements, or to prevent modification of current processes in such a way that they no longer meet permit requirements?

Require that the environmental compliance department perform regular inspections of the manufacturing facility to identify new equipment or process modifications in progress.
Rely on annual inspections by various regulatory agencies to identify equipment or processes that require a permit.
Require that the staff of the environmental compliance department attend monthly safety meetings in different parts of the facility so that they can hear directly from the workers about any changes.
Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.

Answer(s): D

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QUESTION: 292

An internal auditor found that the cost of some material installed on capital projects had been transferred to the inventory account because the capital budget had been exceeded. Which of the following would be an appropriate technique for the auditor to use to determine the extent of the problem?

Identify variances between amounts capitalized each month and the capital budget.
Analyze a sample of capital transactions each quarter to detect instances in which installed material was transferred to inventory.
Review all journal entries that transferred costs from capital to inventory accounts.
Compare inventory receipts with debits to the inventory account and investigate discrepancies.

Answer(s): C

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QUESTION: 293

Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets?

I). Physically inspect all assets on the organization's property.
II). Select a sample department and physically inspect assets in the department.
III). Select a sample from the organization's records of physical assets and physically locate each asset.
IV). Identify assets at a sample of locations and trace to the organization's records.

I only.
I and IV only.
II and III only.
III and IV only.

Answer(s): D

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QUESTION: 294

An audit of an organization's systems development life cycle (SDLC) found that detailed internal control procedures for mission critical business systems were not developed until the systems were implemented. When reporting this finding, the auditor should recommend the development of such procedures during which SDLC phase?

Investigation.
Design.
Development.
Implementation.

Answer(s): B

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QUESTION: 295

In evaluating threats to an organization's network communication system, which of the following transmission media would an auditor recommend as most reliable and effective in thwarting intruders?

Optical fiber cable.
Satellite microwave.
Radio frequency.
Infrared.

Answer(s): A

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QUESTION: 291

QUESTION: 292

QUESTION: 293

QUESTION: 294

QUESTION: 295