IIA Certified Internal IIA-CIA-PART2 Questions & Answers

• Question 21:

  Which of the following should management action plans include at a minimum?

  A. An implementer for the action plan.

  B. An owner of the action plan.

  C. The internal auditor's next review date of the action plan.

  D. Detailed procedures for the action plan.

  Correct Answer: C

• Question 22:

  An internal auditor uses a data query tool in the purchasing process to review the vendor master file for authorizations. Which of the following describes the control objective likely being tested?

  A. Effectiveness.

  B. Response.

  C. Efficiency.

  D. Mitigation.

  Correct Answer: C

• Question 23:

  What is the primary purpose of issuing a preliminary communication to management of the area under review?

  A. To build good relations with management.

  B. To help management develop more responsive and timely action plans.

  C. To formally report medium- and high-risk observations in writing.

  D. To improve the internal audit key performance indicators.

  Correct Answer: B

• Question 24:

  Which method of examining entity-level controls involves gathering information from work groups that represent different levels in an organization?

  A. Questionnaires.

  B. Surveys.

  C. Structured interviews.

  D. Facilitated team workshops.

  Correct Answer: A

• Question 25:

  An internal audit activity is planning its first audit of IT shared services. Which of the following controls would typically be evaluated first?

  A. Entity-level controls.

  B. Application controls.

  C. General controls.

  D. Transaction controls.

  Correct Answer: A

• Question 26:

  Which of the following statements is true regarding engagement planning?

  A. The engagement objectives are the boundaries for the engagement, which outline what will be included in the review.

  B. The risk-based objectives of the engagement can be determined once the scope of the engagement has been formed.

  C. For a consulting engagement, planning typically occurs after the engagement objectives and scope have already been determined.

  D. For an assurance engagement, once the scope is established and testing has begun, the scope cannot be modified.

  Correct Answer: C

• Question 27:

  A toy manufacturer receives certain components from an overseas supplier and uses them to assemble final products. Recently, quality reviews have identified numerous issues regarding the components' compliance with mandatory quality standards. Which type of engagement would be most appropriate to assess the root causes of the quality issues?

  A. A risk assessment.

  B. An operational audit.

  C. A third-party audit.

  D. A fraud investigation.

  Correct Answer: B

• Question 28:

  The chief audit executive (CAE) for a manufacturing company included in this year's audit plan a review of the company's laboratory, using an experienced external service provider. The audit plan was approved by the audit committee without any changes. At the time of engaging the external service provider, the CAE also secured the approval from the CEO. Who is responsible for ensuring that the conclusions reached for this exercise are adequately supported?

  A. Audit committee.

  B. EO.

  C. CAE.

  D. External service provider.

  Correct Answer: A

• Question 29:

  An engagement team is being assembled to audit of one of the organization's vendors. Which of the following statements best applies to this scenario?

  A. The engagement team should include internal auditors who have expertise in investigating vendor fraud.

  B. The engagement team should be comprised of certified accountants who are proficient in financial statement analysis and local accounting principles.

  C. To preserve independence and objectivity, an auditor who worked for the vendor two years prior may not participate on the engagement team.

  D. The engagement team may include an auditor who lacks knowledge of the industry in which the vendor operates.

  Correct Answer: B

• Question 30:

  In an organization with a large internal audit activity that has several audit teams performing engagements simultaneously, which of the following tasks is an engagement supervisor most likely to perform during the planning phase of a new engagement?

  A. Establish a means for resolving any professional judgment differences over ethical issues that may arise during the engagement.

  B. Approve the engagement work program to ensure the program is designed to achieve the engagement objectives.

  C. Evaluate whether the testing and results support the engagement results and conclusion.

  D. Review the sample testing results for exceptions.

  Correct Answer: C