IIA Certified Internal IIA-CIA-PART2 Questions & Answers

• Question 31:

  Which of the following is a disadvantage of using flowcharts during a risk assessment?

  A. People cannot quickly understand the processes via flowcharts.

  B. Flowcharts are not applicable for evaluating the design of controls.

  C. Some serious risks that are not part of the linear process can be missed.

  D. Flowcharts do not enable auditors to identify missing controls.

  Correct Answer: C

• Question 32:

  According to IIA guidance, which of the following reflects a valid principle for the internal audit activity to rely on the work of internal or external assurance providers?

  A. Elements of evaluation.

  B. Elements of organization.

  C. Elements of practice.

  D. Elements of confidentiality.

  Correct Answer: C

• Question 33:

  A chief audit executive's report to the board showed a significant trend of recent audits going over planned budgeted hours. Which of the following factors could cause this trend?

  A. Poor engagement supervision.

  B. Ineffective board reporting.

  C. Untimely observation follow up and closure.

  D. Limited staff resources.

  Correct Answer: B

• Question 34:

  When addressing the excessive overtime being paid to employees in an organization's customer service call center, which of the following would be most relevant for the internal auditor to use?

  1.

  Confirmation.

  2.

  Trend analysis.

  3.

  External benchmarking.

  4.

  Internal benchmarking.

  A. 1, 2, and 3.

  B. 1, 2, and 4.

  C. 1, 3, and 4.

  D. 2, 3, and 4.

  Correct Answer: B

• Question 35:

  An internal auditor's examination of accounts receivable generates the following results:

  

  What is the projected misstatement for the population if ratio estimation is used?

  A. $84,000

  B. $238,095

  C. $700,000

  D. $2,100,000

  Correct Answer: B

• Question 36:

  As part of the preliminary survey, an internal auditor sent an internal control questionnaire to the accounts payable function. Based on the questionnaire responses, the auditor determines that there is no established procedure for adding and approving new vendors. What would the auditor do next?

  A. Determine that this situation is acceptable and focus on more significant issues.

  B. Document the issue in the draft audit report.

  C. Document the observation for further follow up when testing the operating effectiveness of controls.

  D. Interview the personnel associated with this observation.

  Correct Answer: D

• Question 37:

  Management's testimony of improper segregation of duties in the cash receipt process can be considered which of the following?

  A. Analytical.

  B. Reliable.

  C. Relevant.

  D. Sufficient.

  Correct Answer: C

• Question 38:

  What is the primary purpose of creating a preliminary draft audit report?

  A. To save time during final report writing.

  B. To meet the Standards requirement for developing a draft report prior to issuing a final report.

  C. To use as a tool for communicating with management of the area under review.

  D. To require that management implements solutions to issues identified during the engagement.

  Correct Answer: C

• Question 39:

  Which of the following reasonably represents best practices regarding what should be the level of internal audit resource investment in monitoring and following up on engagement outcomes?

  A. Limited resources should be employed since the actual engagement is already completed and the onus of corrective actions rests with management.

  B. No resources should be exclusively deployed for that at all, rather it should be planned as part of future engagements in the same area.

  C. Resources should only be provided towards this if doing so does not result in depletion of resources for new engagements planned in the current period.

  D. Resources should be allocated to this without conditions as long as doing so meets the expectations of management and the judgment of the chief audit executive.

  Correct Answer: A

• Question 40:

  An internal auditor suspects that employee turnover is unusually high at the organization's primary manufacturing plant. To investigate this potential issue, which of the following analytical approaches is the auditor likely to use?

  A. Ratio analysis.

  B. Vertical analysis.

  C. Benchmarking.

  D. Cost-benefit analysis.

  Correct Answer: B