IIA Exam IIA-CIA-Part2 Topic 6 Question 78 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam

Question #: 78
Topic #: 6

An internal auditor is conducting a preliminary survey of the investments area, and sends an internal control questionnaire to the management of the function. (An extract of the survey is provided below).

1. Are there any restrictions for any company's investments?

2. Are there any written policies and procedures that document the flow of investment processing?

3. Are investment purchases recorded in the general ledger on the date traded?

4. Is the documentation easily accessible to an persons who need in to perform their job?

Which of the following is a drawback of testing methods like this?

AThey ore kitted as they do not allow the auditor to test many controls.

BThey do not highlight control gaps

CThey are not useful for identifying areas on which the auditor should locus.

DThey are limited as there is a risk that management may not answer fairly.

Show Suggested Answer

Suggested Answer: C

by Gabriele at May 18, 2024, 10:20 AM

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Winfred

2 months ago

This questionnaire is about as useful as a chocolate teapot. If the management is trying to hide something, they'll just tell the auditor what they want to hear.

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Elmer

19 days ago

B: I think it's a drawback that the questionnaire relies so much on management's honesty.

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Alfreda

23 days ago

A: Exactly, it doesn't really help the auditor identify any real issues.

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Rosalind

1 months ago

B: Yeah, it's like they can easily manipulate the results to make everything seem fine.

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Kris

2 months ago

A: I agree, this questionnaire seems pretty pointless if management can just give biased answers.

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Lashawna

2 months ago

The questionnaire doesn't seem to cover key aspects like segregation of duties and authorization levels. The auditor needs to dig deeper to uncover any potential control gaps.

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Dannette

25 days ago

The questionnaire may not cover everything, but it's a good starting point for the auditor to gather information.

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Tran

27 days ago

I agree, those are key aspects that should be included in the questionnaire.

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Cammy

1 months ago

We should definitely look into segregation of duties and authorization levels to uncover any control gaps.

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Denise

3 months ago

Why do they call it a 'preliminary survey'? Sounds like an excuse to take a nap before the real work begins.

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Georgene

2 months ago

Yeah, it's like a warm-up before the actual audit.

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Mira

2 months ago

I guess it helps the auditor understand the area better.

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Shayne

2 months ago

It's just a way to gather information before diving deeper.

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Fannie

3 months ago

I agree, management's responses could be biased or incomplete. The auditor should use other methods like walkthroughs and sample testing to verify the information provided.

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Glory

1 months ago

A: Agreed, relying solely on management's responses may not give a complete picture of the control environment.

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Jacquline

2 months ago

B: Yeah, management's responses could be biased or incomplete, so it's important to use different testing methods to ensure accuracy.

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Talia

2 months ago

A: I think using other methods like walkthroughs and sample testing is a good idea to verify the information provided by management.

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Kip

3 months ago

The internal control questionnaire is a useful tool, but it does have its limitations. Relying solely on it may not give the auditor a complete picture of the control environment.

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