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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 111:

  Management's annual risk assessment ranked the risk of natural disaster as high. The internal audit activity is tasked to assess whether sufficient controls exist to respond to this risk. Which of the following should be included in the engagement scope?

  A. Ensure that the organization has a plan for responding to natural disasters.
  B. Check the history of natural disasters in the organization's location.
  C. Calculate the probability of a natural disaster event in the year covered by the engagement.
  D. Identify and document a list of natural disasters.
  A. Ensure that the organization has a plan for responding to natural disasters.

• Question 112:

  What is the primary reason that audit supervision includes approval of the engagement report?

  A. To ensure the objectives of the area under review are met.
  B. To ensure senior management supports the report's conclusions.
  C. To ensure report style and grammar are appropriate.
  D. To ensure report findings are substantiated.
  D. To ensure report findings are substantiated.

• Question 113:

  A post-audit questionnaire sent to audit clients is an effective mechanism for:

  A. Substantiating audit observations.
  B. Promoting the internal audit activity.
  C. Improving future audit engagements.
  D. Validating process flow.
  C. Improving future audit engagements.

• Question 114:

  An organization's internal audit plan includes a recurring assurance review of the human resources (HR) department. Which of the following statements is true regarding preliminary communication between the auditor in charge (AIC) and the HR department?

  1.The AIC should notify HR management when the draft audit plan is being developed, as a courtesy.

  2.The AIC should notify HR management before the planning stage begins.

  3.The AIC should schedule formal status meetings with HR management at the start of the engagement.

  4.The AIC should finalize the scope of the engagement before communicating with HR management.

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

• Question 115:

  Which of the following would constitute a violation of the IIA Code of Ethics?

  A. An internal auditor, who has recently joined the organization, has accepted an assignment to audit the electronics manufacturing division. The auditor previously served as senior auditor for the external audit of that division and has audited many electronics companies during the past two years.
  B. An internal auditor has accepted an assignment to audit the warehousing function six months from now. The auditor has no expertise in that area but has signed up for courses in warehousing that will be completed before the assignment begins.
  C. An internal auditor has no ambitions for promotion and has not engaged in training or other professional development activities during the last three years. The auditor's performance assessments indicate consistent quality of work.
  D. An internal auditor discovered an internal financial fraud during the year, and the financial statements were adjusted to properly re ect the loss associated with
  C. An internal auditor has no ambitions for promotion and has not engaged in training or other professional development activities during the last three years. The auditor's performance assessments indicate consistent quality of work.

• Question 116:

  A consumer electronics company is considering acquiring a small flash memory manufacturer. An internal auditor has been assigned to determine if the manufacturer's accounts payable contain all outstanding liabilities. Which audit procedure is not relevant for this objective?

  A. Verify the period of liability of subsequent cash disbursements using related supporting documentation.
  B. Send Confirmations, including zero-balance accounts, to vendors with whom the manufacturer normally does business.
  C. Trace receiving reports issued before the period end to the accounts payable list and vendor invoices.
  D. Verify a sample of accounts payable by using related invoices, receiving reports, and purchase orders.
  B. Send Confirmations, including zero-balance accounts, to vendors with whom the manufacturer normally does business.

• Question 117:

  Which of the following is most effective for the development of management action plans to address audit observations and recommendations?

  A. Internal audit should develop the action plans based on internal audit's observations and recommendations.
  B. Internal audit should collaborate with senior management to provide action plans based on internal audit's observations and recommendations.
  C. Internal audit must not be involved in the development of management action plans.
  D. Internal audit can collaborate with management to provide action plans based on internal audit's observations and recommendations.
  D. Internal audit can collaborate with management to provide action plans based on internal audit's observations and recommendations.

• Question 118:

  Which of the following best describes the four components of a balanced scorecard?

  A. Customers, innovation, growth, and internal processes.
  B. Business objectives, critical success factors, innovation, and growth.
  C. Customers, support, critical success factors, and learning.
  D. Financial measures, learning and growth, customers, and internal processes.
  D. Financial measures, learning and growth, customers, and internal processes.

• Question 119:

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

  A. Client accomplishments.
  B. Effect.
  C. Supportive information.
  D. Scope statements.
  B. Effect.

• Question 120:

  Following an audit, management developed an action plan to improve controls over the handling of scrap metal. Which of the following would be the most appropriate course of action for the auditor to follow up?

  A. Conduct another audit engagement to ensure all risks related to the sales of scrap metal have been mitigated.
  B. Ensure new procedures have been documented, approved, and distributed to the employees responsible.
  C. Perform retesting to confirm that new procedures address the previously identified deficient control activities.
  D. Analyze the new procedures, then report to senior management whether the associated risks have been managed.
  C. Perform retesting to confirm that new procedures address the previously identified deficient control activities.