IIA-CIA-Part2 Exam - Topic 8 Question 70 Discussion

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

Question #: 70
Topic #: 8

When forming an opinion on the adequacy of management's systems of internal control, which of the following findings would provide the most reliable assurance to the chief audit executive?

* During an audit of the hiring process in a law firm, it was discovered that potential employees' credentials were not always confirmed sufficiently. This process remained unchanged at the following audit.

* During an audit of the accounts payable department, auditors calculated that two percent of accounts were paid past due. This condition persisted at a follow up audit.

* During an audit of the vehicle fleet of a rental agency, it was determined that at any given time, eight percent of the vehicles were not operational. During the next audit, this figure had increased.

* During an audit of the cash handling process in a casino, internal audit discovered control deficiencies in the transfer process between the slot machines and the cash counting are

a. It was corrected immediately.

A1 and 3 only

B1 and 4 only

C2 and 3 only

D2 and 4 only

Show Suggested Answer

Suggested Answer: A

by Scarlet at Jan 25, 2024, 12:54 AM

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Iraida

5 months ago

Surprised that 8% of rental vehicles were out of service!

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Reta

6 months ago

2 is just a small percentage, not that concerning.

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Albert

6 months ago

Wait, how can 2 and 4 be reliable if they had issues too?

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Cory

6 months ago

Totally agree, those are major red flags!

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Jina

6 months ago

1 and 3 show persistent issues.

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Dorothy

7 months ago

I’m leaning towards option 2 and 4, but I’m not confident. The accounts payable issue seems serious, and the cash handling deficiencies could lead to big losses.

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Wilda

7 months ago

I feel like we practiced a similar question where we had to identify the most significant risks. I think option 1 might be less severe since it’s just about hiring.

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Aleta

7 months ago

I'm not entirely sure, but I think the cash handling process in the casino is critical. If they found deficiencies, wouldn't that be a red flag?

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Antonio

7 months ago

I remember we discussed how persistent issues in audits indicate weak internal controls, so maybe options 2 and 3 are more concerning?

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Daniel

7 months ago

I'm a little unsure about this. I'll need to carefully weigh the different findings and think about which ones would provide the most reliable assurance to the chief audit executive.

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Ivory

7 months ago

I'm feeling pretty confident about this one. The control deficiencies that were not corrected, like the issues with the vehicle fleet and the accounts payable, seem like the most reliable indicators of the adequacy of the internal controls.

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Ciara

7 months ago

Hmm, I'm a bit confused by the wording of the question. I'll need to re-read it a few times to make sure I understand what they're asking.

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Linette

7 months ago

This seems like a tricky question. I'll need to carefully consider the different findings and how they relate to the reliability of the internal controls.

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Kattie

7 months ago

Okay, I think I've got a handle on this. The key is to identify which findings show persistent control issues that weren't addressed, as that would provide the most reliable assurance to the chief audit executive.

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Heike

7 months ago

Okay, I've got this. Validation rules are the way to go here - they allow you to define specific criteria for valid data and prevent invalid entries from being saved.

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Janae

7 months ago

Okay, I think I've got it. The issue is that Paul didn't properly assign Adam the necessary permissions to test Bea's updates.

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Louann

7 months ago

I'm feeling pretty confident about this one. The 'oam vprn-ping' command with the correct source and destination IPs should be the way to go.

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Raul

8 months ago

This seems like a straightforward allocation question, but I want to make sure I understand the details before jumping in.

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Carla

1 year ago

Sounds like the management needs to 'rent' some better internal controls in that vehicle fleet audit.

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Rikki

11 months ago

Agreed, those findings would provide the most reliable assurance to the chief audit executive.

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Rikki

12 months ago

The hiring process and cash handling process are key areas to focus on for reliable assurance.

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Rikki

1 year ago

B) 1 and 4 only

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Krissy

1 year ago

The casino's cash handling issues must be wild. I bet the auditors had a real 'high stakes' job on their hands.

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Dean

1 year ago

Wait, so the auditors found problems with the hiring process, accounts payable, vehicle fleet, and cash handling, and none of them were fully corrected? Sounds like a hot mess to me!

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Loreta

11 months ago

D) 2 and 4 only

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Annett

11 months ago

C) 2 and 3 only

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Kristel

12 months ago

B) 1 and 4 only

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Aleta

12 months ago

A) 1 and 3 only

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Estrella

1 year ago

I'm leaning towards option D. Persistent issues in accounts payable and the vehicle fleet suggest deeper problems that need to be addressed.

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Cecilia

12 months ago

User 2

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Alline

12 months ago

User 1

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Vicki

12 months ago

B) 1 and 4 only

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Fannie

1 year ago

D) 2 and 4 only

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Gerri

1 year ago

The cash handling process in the casino sounds like the most critical area. If they can get that right, the other findings seem less severe in comparison.

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Mitsue

1 year ago

Hmm, I think the most reliable assurance would be if the control deficiencies were corrected immediately. That shows the management is taking the issues seriously and making changes to strengthen the internal controls.

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Dante

1 year ago

So, the answer would be option D, right?

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Josphine

1 year ago

I agree, that would provide the most reliable assurance to the chief audit executive.

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Dante

1 year ago

I think finding control deficiencies in the cash handling process is crucial.

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