IIA IIA-CIA-PART2 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 1:

  An organization is experiencing a significant risk that threatens its financial well-being Senior management requested that the chief audit executive (CAE) meet with them to discuss the risk. Which of the following would best describe the CAE's responsibility at the meeting?

  A. Inform senior management of the appropriate actions they should take to control the risk
  B. Recommend that the internal audit activity provide consulting services to help minimize the risk
  C. Assume the responsibility of resolving the significant risk that will affect the organization
  D. Determine whether senior management accepted risk that may be deemed unacceptable for the organization
  D. Determine whether senior management accepted risk that may be deemed unacceptable for the organization

• Question 2:

  Which of the following methodologies consists of the internal auditor holding individual meetings with different people, asking them the same questions, and aggregating the results?

  A. Facilitated workshops.
  B. Surveys.
  C. Structured interviews.
  D. Elicitation.
  C. Structured interviews.

• Question 3:

  Which of the following is the most appropriate approach for the internal audit activity to follow up on management action plans?

  A. Create a tracking system for follow up
  B. Ensure that follow-up activities are performed at least weekly.
  C. Delegate follow-up activities to qualified administrative staff within the business unit
  D. Ensure that follow-up activities are performed by the most senior auditor on staff
  A. Create a tracking system for follow up

• Question 4:

  Which of the following sources of audit evidence is most reliable?

  A. Evidence obtained directly from an untested third party.
  B. Uncorroborated audit evidence obtained indirectly from an employee.
  C. Undocumented audit evidence obtained directly from a manager.
  D. Timely audit evidence obtained directly from a customer.
  D. Timely audit evidence obtained directly from a customer.

• Question 5:

  What is the primary objective of an engagement supervisor's review of key activities performed during the engagement?

  A. To ensure that the engagement is completed on time and within budget
  B. To ensure that all work performed meets acceptable quality standards
  C. To ensure that management has provided suitable responses to all observations
  D. To ensure that management is satisfied with the progress of the engagement
  B. To ensure that all work performed meets acceptable quality standards

• Question 6:

  An internal auditor completed a consulting engagement covering a recent advertising campaign. The audit client asked the auditor to forward a copy of the report to one of the three advertising agencies used by the organization. According to IIA guidance, which of the following statements is true regarding this request?

  A. The internal auditor may communicate the results to the advertising agency as instructed by the audit client, with approval from the chief audit executive.
  B. The internal auditor may not communicate the results to this external party regardless of the engagement client's instruction.
  C. The internal auditor may send the report and is required to include instructions for the advertising agency to limit further distribution and the use of results.
  D. The internal auditor may only communicate the results verbally to the advertising agency and should not provide a hard copy.
  A. The internal auditor may communicate the results to the advertising agency as instructed by the audit client, with approval from the chief audit executive.

• Question 7:

  During a review of the organization's waste management processes, the internal auditor discovered that wastewater is being disposed of inappropriately. The auditor's recommendations, suggested to mitigate the risk of regulatory sanctions

  and reputational damages, were accepted and timelines for implementation were agreed. However, during the internal audit activity's periodic follow-up exercise, management indicated that the recommendation was too expensive to

  implement and the current disposal method has been cost-effective.

  What should the chief audit executive do in this case?

  A. Nothing, as the internal audit activity has fulfilled its responsibility of providing recommendations to mitigate the risks to which the organization is exposed.
  B. Contact the regulatory agency responsible for monitoring such matters in order to convince management to implement the recommendations.
  C. Convene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.
  D. Highlight the current exposure to the external auditors so they too can highlight the issue and further pressure management to address the concern.
  C. Convene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.

• Question 8:

  The chief audit executive (CAE) determined that the internal audit activity lacks the resources needed to complete the internal audit plan. Which of the following would be the most appropriate action for the CAE to take?

  A. Use guest auditors from within the organization and leverage their experience by assigning them to lead engagements in areas where they previously worked
  B. Outsource some of the audits to the organization's external auditor, who is already familiar with the organization
  C. Invite non-auditors to join the internal audit activity for a two-year rotational position and assign them to audit teams reviewing areas where they have no previous management responsibility
  D. Recruit recent college graduates and employ them as audit interns, with the aim of offering permanent employment
  B. Outsource some of the audits to the organization's external auditor, who is already familiar with the organization

• Question 9:

  Which of the following is the advantage of using internal control questionnaires (ICQs) as part of a preliminary survey for an engagement?

  A. ICQs provide testimonial evidence.
  B. ICQs are efficient.
  C. ICQs provide tangible evidence to be quantified.
  D. ICQs put observations into perspective.
  B. ICQs are efficient.

• Question 10:

  Which information-gathering method would be most efficient for an internal auditor to determine whether specified control procedures are in place?

  A. Interviews
  B. Observations
  C. Reperformance
  D. Internal control questionnaires
  D. Internal control questionnaires