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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 91:

  According to the Standards, which of the following describes the condition attribute when applied to the observations and recommendations contained in the audit report?

  A. The standards, measures, or expectations used in making an evaluation or Verification.
  B. The reason for the difference between the expected state and the actual state.
  C. The factual evidence that the internal auditor found in the course of the examination.
  D. The risk or exposure the organization encounters because the actual state is not consistent with the criteria.
  C. The factual evidence that the internal auditor found in the course of the examination.

• Question 92:

  Which of the following are advantages of owcharts over internal control questionnaires?

  1.Flowcharts reduce the need to test whether employees are observing internal control processes.

  2.Flowcharts provide a visual depiction of the processes in the area under review.

  3.Flowcharts identify and prioritize internal control design weaknesses.

  4.Flowcharts highlight the control points to help internal auditors evaluate control design.

  A. 1 and 3 only.
  B. 2 and 4 only.
  C. 1, 2, and 3 only.
  D. 2, 3, and 4 only.
  B. 2 and 4 only.

• Question 93:

  An internal auditor is conducting a walk-through of the accounts payable process. The auditor wants to assess the extent of the completeness of debts to suppliers as recorded in the ledger. Which of the following techniques would be most appropriate?

  A. Tracing randomly selected vendor invoices to the record in the general ledger.
  B. Confirming with the main customers that the amount owed matches the ledger's recorded amounts.
  C. Vouching a statistical sample of vendor invoices recorded in the general ledger.
  D. Using analytical techniques to establish expectations of what should be recorded for vendors.
  A. Tracing randomly selected vendor invoices to the record in the general ledger.

• Question 94:

  An internal auditor for a regional bank suspects that the head of commercial lending has been granting loans without the required collateral. Which of the following sampling techniques will be most effective for investigating the auditor's suspicion?

  A. Variables sampling.
  B. Dollar-unit sampling.
  C. Judgmental sampling.
  D. Discovery sampling.
  A. Variables sampling.

• Question 95:

  The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?

  I. Financial measures.

  II. Internal business process measures.

  III. Client satisfaction measures.

  IV.

  Innovation and learning measures.

  A. I only
  B. II and IV only
  C. III and IV only
  D. II, III, and IV only
  D. II, III, and IV only

• Question 96:

  Which of the following must an auditor establish in order to demonstrate that fraud has occurred?

  A. Monetary damage to the victim.
  B. The suspect's intent.
  C. Existence of an internal control defficiency.
  D. Evidence of collusion.
  B. The suspect's intent.

• Question 97:

  According to IIA guidance, which of the following actions should the internal auditor take immediately after having considered fraud scenarios and identified and prioritized fraud risks?

  A. Determine which controls, if any, are in place to mitigate the fraud risks.
  B. Follow established protocols for internal reporting and investigating fraud allegations.
  C. Research frauds that have occurred in similar organizations.
  D. Incorporate the fraud risk assessment into the engagement plan.
  A. Determine which controls, if any, are in place to mitigate the fraud risks.

• Question 98:

  Which of the following internal control attributes should internal auditors consider testing during a review of the board of directors?

  A. The presence of an independent critical mass.
  B. The established philosophy and operating style of senior management.
  C. The articulated internal control objectives of the organization.
  D. The organization's employee recruiting and retention policies.
  A. The presence of an independent critical mass.

• Question 99:

  Which of the following actions is most appropriate for the chief audit executive to take upon discovering an inadequately designed control, which resulted in a significant misalignment between operational management and the board?

  A. Report the observation and the action plan to both operational management and senior management.
  B. Report the observation without any specific action plan to senior management and the board.
  C. Report the observation and management's action plan to senior management and the board.
  D. Report the observation without management's action plan to the board only.
  C. Report the observation and management's action plan to senior management and the board.

• Question 100:

  An internal auditor reviewed bank reconciliations prepared by management of the area under review. The auditor noted that the bank statements attached did not have the bank heading, logo, or address. Which of the following statements is true regarding this situation?

  A. The evidence may not be reliable.
  B. The evidence is not relevant.
  C. The evidence may not be sufficient.
  D. The information missing is not relevant to the audit.
  A. The evidence may not be reliable.