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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 1:

  An internal auditor intends to create a risk and control matrix to better understand the organization's complex manufacturing process. With which of the following approaches would the auditor most likely start?

  A. Assess management responses to key risk exposures.
  B. Analyze the costs and Benefits of key controls.
  C. Evaluate the design adequacy of known controls.
  D. Conduct a walk-through of all related activities.
  D. Conduct a walk-through of all related activities.

• Question 2:

  An internal auditor documented the results of testing user passwords for potential security lapses. The auditor identified 240 out of 300 user passwords with security lapses. As part of the audit workpapers, the auditor is working on writing the effect of the results. Which of the following statements should the auditor include in the workpapers to accomplish this?

  A. The employees' failure to change their passwords created significant risks to the organization's operation.
  B. The number of lapses identified in the testing exposes the organization to issues that it would not be able to address.
  C. The 80% of tested passwords with security lapses exposes the organization to potential hacking of sensitive information.
  D. The 240 out of 300 user passwords identified during the testing were not changed on an average of 60 days.
  C. The 80% of tested passwords with security lapses exposes the organization to potential hacking of sensitive information.

• Question 3:

  An internal audit activity is planning itsfirst audit of IT shared services. Which of the following controls would typically be evaluatedfirst?

  A. Entity-level controls.
  B. Application controls.
  C. General controls.
  D. Transaction controls.
  A. Entity-level controls.

• Question 4:

  Which of the following would most likely appear in the engagement workpapers?

  A. Copies of all source documents audited.
  B. The name of the internal auditor who reviewed the work.
  C. A copy of the most recent financial statements.
  D. The board's response to key findings.
  B. The name of the internal auditor who reviewed the work.

• Question 5:

  The scope of a business process review primarily involves:

  A. Appraising the environment and comparing against established criteria.
  B. Assessing the organization's system of internal controls.
  C. Reviewing routine financial information and assessing the appropriateness of various accounting treatments.
  D. Evaluating organizational and departmental structures, including assessments of transaction flows.
  D. Evaluating organizational and departmental structures, including assessments of transaction flows.

• Question 6:

  According to IIA guidance, which of the following is most likely to become part of the engagement work program?

  A. Information obtained from historic audits and memos.
  B. Risk and control registers or matrices.
  C. Resource deployment plans and sampling methodologies.
  D. Prior findings and management responses.
  C. Resource deployment plans and sampling methodologies.

• Question 7:

  Which of the following statements is true regarding risk assessments, including the evaluation and prioritization of risk and control factors?

  A. A risk-by-process matrix enables the user to determine associations between any of the processes and the risks.
  B. The risk-factor approach for linking business processes and risks is more direct than the use of a risk-by-process matrix.
  C. Internal risk factors are built into the environment and the nature of the process itself.
  D. A risk map is used primarily to depict which risks will be reduced and which will be shared.
  C. Internal risk factors are built into the environment and the nature of the process itself.

• Question 8:

  Which of the following is the least relevant when preparing the internal audit activity's annual engagement plan?

  A. Senior management's requests for internal audit engagements.
  B. A rotation of internal audit engagements selected on a time basis.
  C. The organization's current risk priority and exposure.
  D. Coordination with the audit plans of the external auditor.
  B. A rotation of internal audit engagements selected on a time basis.

• Question 9:

  It is standard practice for customers to notify the company when they experience technical problems with a product. Each notification recorded in the customer care system. According to the documented internal procedures, each customer notification must be addressed. Which of the following would provide the best evidence of the control fulfillment?

  A. Documentation of actions supporting the resolution of the technical issue
  B. An email sent to the customer thanking them for reporting the issue
  C. A log of the date and time of a customer's notification
  D. Marking customer notifications as "closed" in the customer care system
  A. Documentation of actions supporting the resolution of the technical issue

• Question 10:

  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.
  B. Ineffective board reporting.