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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 121:

  While planning an audit engagement of a procurement card activity, which of the following actions should an internal auditor take to identify relevant risks and controls?

  A. Compare card transaction types against procurement card policy guidelines.
  B. Develop the scope and objectives of the engagement.
  C. Determine how many cardholders exceeded their daily limit.
  D. Meet with the procurement card program administrator.
  D. Meet with the procurement card program administrator.

• Question 122:

  Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets?

  I. Physically inspect all assets on the organization's property.

  II. Select a sample department and physically inspect assets in the department.

  III. Select a sample from the organization's records of physical assets and physically locate each asset.

  IV.

  Identify assets at a sample of locations and trace to the organization's records.

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

• Question 123:

  Which of the following would help the internal audit activity assess compliance with the organization's standard operating procedures for bank deposits during a preliminary survey?

  A. Issue an internal control questionnaire to select branch customers.
  B. Issue an internal control questionnaire to the president of the organization.
  C. Issue an internal control questionnaire to the director of bank operations.
  D. Issue an internal control questionnaire to select branch managers.
  D. Issue an internal control questionnaire to select branch managers.

• Question 124:

  Which of the following is the primary reason an internal auditor would issue an interim report during an engagement?

  A. To provide a status update on a short engagement to management of the area under review and to the audit supervisor.
  B. To Confirm agreement with preliminary observations and conclusions identified during the engagement.
  C. To provide those responsible for the area under review with the opportunity to act on certain observations immediately.
  D. To verify that the corrective actions required by senior management are completed as agreed.
  C. To provide those responsible for the area under review with the opportunity to act on certain observations immediately.

• Question 125:

  Which of the following would not be an appropriate step for an internal auditor to perform during an assessment of compliance with an organization's privacy policy?

  A. Determine who can access databases containing confidential information.
  B. Evaluate the organization's privacy policy to determine if appropriate information is covered.
  C. Analyze access to permanent files and reports containing confidential information.
  D. Evaluate the government's security measures related to confidential information received from the organization.
  D. Evaluate the government's security measures related to confidential information received from the organization.

• Question 126:

  Which of the following statements is true regarding a drawback of using internal control questionnaires (ICQs)?

  A. When internal auditors need to cover many control procedures, using ICQs is generally less than conducting observations and inspections.
  B. It is generally difficult for internal auditors to compile appropriate ICQs for business activities that are governed by standardized operating procedures.
  C. ICQs are inadequate to provide effective assurance on how organizational processes are executed in practice.
  D. It is generally difficult for internal auditors to process completed questionnaires, because ICQs frequently elicit detailed comments and long answers from management.
  D. It is generally difficult for internal auditors to process completed questionnaires, because ICQs frequently elicit detailed comments and long answers from management.

• Question 127:

  Which of the following is a detective control for managing the risk of fraud?

  A. Awareness of prior incidents of fraud.
  B. Contractor non-disclosure agreements.
  C. Verification of currency exchange rates.
  D. Receipts for employee expenses.
  C. Verification of currency exchange rates.

• Question 128:

  An internal auditor at a utility company is investigating a tip that some unidentified company electricians are willing to cancel a customer's service order in the system and instead perform the requested services for the customer in exchange

  for unrecorded cash.

  Which of the following would be the most appropriate action for the auditor to obtain preliminary information?

  A. Randomly select an electrician from the relevant business unit and interview the electrician without disclosing the purpose of the interview.
  B. Conduct a walkthrough by accompanying an electrician to a customer's site and observing the electrician perform requested services real-time.
  C. Extract data on cancelled orders and analyze service dates, reasons for canceled orders, and electricians assigned.
  D. Obtain data on routes of electricians' vehicles, clean and normalize the data, and compare routes with customers' service orders.
  C. Extract data on cancelled orders and analyze service dates, reasons for canceled orders, and electricians assigned.

• Question 129:

  After completing a fraud investigation but before publishing a formal written report, the chief audit executive should submit a draft of the final report to the organization's:

  A. Legal counsel.
  B. External auditor.
  C. Audit committee chairperson.
  D. Chief executive officer.
  A. Legal counsel.

• Question 130:

  Which of the following is the main advantage of using an internal control questionnaire over other evidence-gathering methods?

  A. It provides written evidence.
  B. It enables efficiency in gathering information.
  C. It offers more effective identification of key controls.
  D. It offers the ability to trace information.
  B. It enables efficiency in gathering information.