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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 1001:

  When interviewing an individual in relation to a fraud investigation, which course of action should the internal auditor follow?

  A. Assure the individual that the results of the interview will remain confidential.
  B. Establish a rapport with the subject to encourage openness.
  C. Discontinue questioning once the individual has confessed to the fraud.
  D. Refrain from deviating from the list of questions prepared before the interview.
  B. Establish a rapport with the subject to encourage openness.

• Question 1002:

  Management requested internal audit consulting services. During fieldwork significant control issues were identified by the internal audit team. Which of the following is an appropriate response from the chief audit executive?

  A. End the consulting engagement and report the results to management as planned
  B. Report the significant control issues to senior management and the board and recommend corrective action
  C. Mutually agree with the engagement client on corrective actions
  D. Focus on the consulting engagement and schedule an assurance engagement next to address the control issues
  B. Report the significant control issues to senior management and the board and recommend corrective action

• Question 1003:

  During an assurance engagement, an internal auditor noted that the time staff spent accessing customer information in large Excel spreadsheets could be reduced significantly through the use of macros. The auditor would like to train staff on how to use the macros. Which of the following is the most appropriate course of action for the internal auditor to take?

  A. The auditor must not perform the training, because any task to improve the business process could impact audit independence.
  B. The auditor must create a new, separate consulting engagement with the business process owner prior to performing the improvement task.
  C. The auditor should get permission to extend the current engagement, and with the process owner's approval, perform the improvement task.
  D. The auditor may proceed with the improvement task without obtaining formal approval, because the task is voluntary and not time-intensive.
  C. The auditor should get permission to extend the current engagement, and with the process owner's approval, perform the improvement task.

• Question 1004:

  What is the most likely source of information for a detailed schedule of a company's insurance policies in force?

  A. Original journal entries found in the cash disbursements journal, along with supporting checks processed by the bank.
  B. Policies and procedures governing insurance coverage.
  C. The current fiscal year's budget for insurance, together with the beginning balance of the prepaid insurance account.
  D. The files containing insurance policies with various carriers.
  D. The files containing insurance policies with various carriers.

• Question 1005:

  An internal auditor reviews vendor invoices for accuracy. The auditor identifies an instance where a vendor was overpaid. The accounts payable manager explained that a debit note was later issued against the vendor and the overpayment

  was recovered. The auditor Confirmed the amount recovered was accurate.

  Which of the following techniques did the auditor use?

  A. Observation.
  B. Inspection.
  C. Vouching.
  D. Tracing.
  B. Inspection.

• Question 1006:

  An internal auditor performed a test of controls and found that a statistically selected representative sample of recorded transactions within the account receivables ledger had an error rate that was within management expectations. The

  associated revenue account was outside the scope of the audit engagement.

  How should the conclusion to this engagement be reported?

  A. The auditor should state that the error rate was within the selected confidence level.
  B. Negative assurance should be provided, as the associated revenue account was not examined.
  C. The auditor should state that controls over the recording of transactions in the revenue account are operating effectively.
  D. Positive assurance could be provided for the effectiveness of the accounts receivable controls.
  D. Positive assurance could be provided for the effectiveness of the accounts receivable controls.

• Question 1007:

  Internal auditors prepared the following observation:

  "We found that there was a relatively large underspend against the approved budget in one of the marketing projects. The project manager should review and revise the budget preparation procedure for future projects."

  The addition of which element would likely strengthen and improve the written observation?

  A. The cause of the issue.
  B. The current state.
  C. The corrective action needed.
  D. The owner of the issue.
  A. The cause of the issue.

• Question 1008:

  The head of the IT department asked the chief audit executive (CAE) to use the IT auditor's resources to explain systems development roles and responsibilities to end users in the customer service department. Which of the following is the best way for the CAE to Define the purpose of such an engagement?

  A. Assess the level of maturity of IT development process in the customer service department.
  B. Enhance customer service staff's understanding of IT development approaches executed in the organization.
  C. Implement IT development procedures to allocate customer service resources effectively.
  D. Determine whether the authorized IT development process is being adhered to in the customer service department.
  B. Enhance customer service staff's understanding of IT development approaches executed in the organization.

• Question 1009:

  An organization receives an electricity bill on a quarterly basis. The month-end provision for the electricity expense can be verifiedas accurate by using which of the following auditing techniques?

  A. Re-performing the calculation of the provision.
  B. Matching the provision to the electricity bill.
  C. Obtaining an external Confirmation of the amount of the provision.
  D. Obtaining management representation on the accuracy.
  A. Re-performing the calculation of the provision.

• Question 1010:

  Internal audit staff lacks the expertise to perform a fraud investigation engagement stemming from a whistleblowing incident. Which of the following is the most appropriate option for the chief audit executive?

  A. Appoint an independent fraud investigation specialist to work with the selected internal auditors.
  B. Organize in-house fraud investigation training sessions for selected internal auditors.
  C. Assign an experienced auditor to the engagement for a development opportunity.
  D. Hire a new internal auditor who possesses fraud investigation experience.
  A. Appoint an independent fraud investigation specialist to work with the selected internal auditors.