Exam IIA-CIA-Part2 topic 2 question 94 discussion

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

Question #: 94
Topic #: 2

An internal auditor is conducting tests to determine if an organization is in compliance with its payment approval policies. After reviewing a sample of vouchers selected, the internal auditor concluded that there were indicators of fraud. Which of the following would be the most appropriate method to expand the audit test to achieve the audit objective?
I. Validate the completeness of the accounts payable files.
II. Examine the sample of vouchers in greater detail.
III. Increase the number of vouchers in the sample.
IV. Broaden the scope of the examination to include credits received by accounts payable.

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

Show Suggested Answer

Suggested Answer: B 🗳️

by KonradK at Aug. 17, 2021, 7:03 p.m.

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John1237

1 year ago

Examining the sample of vouchers in greater detail is only relevant if the internal auditor wants to expand the audit test. Otherwise, it may be sufficient to increase the number of vouchers in the sample. Option I is to verify that all liabilities are accounted for (not paid). This requires tracing the transactions. Option IV may be another way of verifying/tracing the completeness of recorded liabilities.

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John1237

12 months ago

To complete Option 1, the vouching procedure looks for existence, not completeness. At the same time, fraud investigation requires discovery sampling, not completeness.

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asdfghjk2020

1 year, 5 months ago

The audit objective is to determine if an organization is in compliance with its payment approval policies, choice I & IV are out of the audit objective. (completeness of AP files & credits received by AR.

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KonradK

1 year, 6 months ago

Why not D? Can someone explain because B seems not right to me. Thanks

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