IIA-CIA-PART2 Real Exam Questions and Verified Answers

Question 1 Single choice

An internal auditor used a risk and control matrix to prepare a work program for testing a software release.
During the engagement planning stage, he tested the design of the release procedure as a key control and concluded that the control was not designed well. During the performance stage, he tested the operation of this control and concluded that it was implemented as designed.

Which of the following statements is true regarding this scenario?

A
The test of the control design should have occurred at the performance stage.
B
The test of the operating effectiveness of the control was not necessary.
C
A risk and control matrix is not appropriate for this type of engagement.
D
The test of the operating effectiveness of the control should have occurred at the planning stage.

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Correct answer: B

Question 2 Single choice

On 1 January, the internal audit activity began an audit to determine the effectiveness and efficiency of the organization's operations. The fieldwork was completed on 31 March, the draft audit report was issued on 30 April, and the final audit report was issued on 15 May.

Which action by the engagement supervisor demonstrates that the audit was properly supervised?

A
All workpapers were reviewed by the engagement supervisor after fieldwork was completed.
B
The chief audit executive approved the preliminary audit plan prior to issuing the final audit report.
C
The engagement supervisor reviewed workpapers throughout the audit.
D
The audit program was approved by the engagement supervisor on the same date that the audit report was issued.

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Correct answer: C

Question 3 Single choice

An organization has a mature control environment but limited internal audit resources.
Given this scenario, on which of the following should the internal auditors focus their testing?

A
Detective compensating controls.
B
Preventive compensating controls.
C
Detective key controls.
D
Preventive key controls.

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Correct answer: D

Question 4 Single choice

Which of the following would most likely contribute to discrepancies between receiving reports and the number of units in a shipment?

A
Failing to compare the quality of goods received with specifications.
B
Using inadequate vendor selection procedures.
C
Accepting improper authorization for purchases.
D
Indicating the quantities ordered on the receiving department's copy of the purchase order.

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Correct answer: D

Question 5 Single choice

The audit committee has asked the chief audit executive (CAE) to conduct an ad hoc forensic investigation of the purchasing department within a month, due to the significance and urgency of a recently discovered risk. The internal audit activity currently has no available staff with relevant experience or qualifications.

Which of the following is the CAE's best option for fulfilling the internal audit activity's responsibilities in this case?

A
Outsource the investigation to independent professional consultants
B
Select certain internal auditors and remove them from their current assignments so that they can begin a forensic investigation course
C
Recruit additional internal auditors possessing relevant qualification and experience
D
Decline the engagement at this time

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Correct answer: A

Question 6 Single choice

The objective of an internal audit engagement is to assess the effectiveness of warehouse operations.

Which of the following should be included in the scope of the engagement?

A
Authorizations of purchase invoices.
B
Calculations of current and quick ratios.
C
Physical counts of inventory.
D
Fair values of financial assets.

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Correct answer: C

Question 7 Single choice

An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers.

What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?

A
Confirm accounts receivable.
B
Confirm accounts payable.
C
Review the endorsements and banks of deposit on customers' canceled checks.
D
Flowchart and analyze key controls in the cash receipts process.

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Correct answer: D

Question 8 Single choice

An internal auditor for a large telecommunications organization identified potential risk factors related to a planned billing system conversion.

Which of the following risk factors would present the least potential exposure to the organization?

A
Critical customer support functions are not available for a short period.
B
Invoice generation disruptions due to required maintenance.
C
Inaccurate billing of telephone calls due to database error.
D
End user criticism and lack of support for the new system.

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Correct answer: B

Question 9 Single choice

In which of the following ways can a chief audit executive demonstrate conformance with Standards requirements regarding the communication of risk acceptance?

A
Minutes of meetings where a significant risk issue was discussed with the executive management team or the board.
B
Regular reviews of internal audit practices, including IIA guidance, with the internal audit activity.
C
A policy in the internal audit manual that describes the organization's reporting and internal auditors' role in it.
D
Risk reviews and reports that demonstrate changes in risk trends and mitigation measures.

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Correct answer: A

Question 10 Single choice

The chief audit executive's responsibility regarding control processes includes:

A
Assisting senior management and the audit committee in the development of an annual assessment about internal control.
B
Overseeing the establishment of internal control processes.
C
Maintaining the organization's governance processes.
D
Ensuring that the internal audit activity assesses all control processes annually.

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Correct answer: A