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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 141:

  An internal auditor observes a double payment transaction on a supplier invoice during an accounts payable engagement. Which of the following steps would be the most effective in helping the auditor determine whether fraud exists?

  A. Switch the existing assurance engagement into a fraud investigation engagement.
  B. Extend the audit scope and perform additional testing of controls on other related areas.
  C. Review the prior year's transaction volume and amounts paid compared to the prior year's budget.
  D. Perform data analytics on the supplier's information, invoiced amounts, and payments performed.
  C. Review the prior year's transaction volume and amounts paid compared to the prior year's budget.

• Question 142:

  Which of the following should management action plans include at a minimum?

  A. An implementer for the action plan.
  B. An owner of the action plan.
  C. The internal auditor's next review date of the action plan.
  D. Detailed procedures for the action plan.
  C. The internal auditor's next review date of the action plan.

• Question 143:

  If an auditor expects to find numerous discrepancies between recorded values and audited values of sample selections, which sampling technique would be most appropriate?

  A. Attributes sampling.
  B. Probability-proportional-to-size sampling.
  C. Difference estimation sampling.
  D. Discovery sampling.
  C. Difference estimation sampling.

• Question 144:

  As part of a preliminary survey of the purchasing function, an internal auditor reads the department's policies and procedures manual and concludes that the manual describes the processing steps clearly and contains an appropriate internal control design. The next engagement objective is to evaluate the operating effectiveness of internal controls. Which procedure would fulfill this objective most effectively?

  A. Perform a design test.
  B. Perform a compliance test.
  C. Perform a systems test.
  D. Perform an efficiency test.
  B. Perform a compliance test.

• Question 145:

  In which of the following populations would the internal auditor most likely choose to use a stratified sampling approach?

  A. Inventory comprised of the same items stored in different warehouses
  B. Batches of materials that must be confirmed as meeting quality standards
  C. Revenue that is earned by an organization through cash receipts or as receivable.
  D. Tax reports submitted to meet the requirements of the local taxation authority
  C. Revenue that is earned by an organization through cash receipts or as receivable.

• Question 146:

  The final internal audit report should be distributed to which of the following individuals?

  A. Audit client management only
  B. Executive management only
  C. Audit client management, executive management, and others approved by the chief audit executive.
  D. Audit client management, executive management, and any those who request a copy.
  C. Audit client management, executive management, and others approved by the chief audit executive.

• Question 147:

  Engagement team members have a difference in professional judgment and disagree regarding the risk level of an audit finding. Which of the following actions should the chief audit executive take to resolve the disagreement?

  A. Review the workpaper in question to ensure it includes only the viewpoint of the senior engagement supervisor.
  B. Seek the opinion of the audit client to determine which staff member's professional judgment is the most accurate.
  C. Instruct staff to perform any necessary additional research, and schedule a meeting for the group to discuss pertinent facts.
  D. Convene a meeting of the organization's executives to gather their input on the organization's risk appetite, which will inform the ranking.
  C. Instruct staff to perform any necessary additional research, and schedule a meeting for the group to discuss pertinent facts.

• Question 148:

  The chief audit executive (CAE) is training a new internal auditor and explains the importance of thorough documentation in workpapers to support the conclusions and engagement results. Which of the following best practices is the CAE likely to recommend?

  A. Internal auditors should explain the scope of work performed on each workpaper, including what was covered and not covered.
  B. Internal auditors should create separate workpapers for each test conducted during the audit to keep the workpapers understandable.
  C. Internal auditors should ensure all information that management has provided to the auditor is noted and accounted for in the workpapers.
  D. Internal auditors should sign and date each workpaper after it is reviewed and signed by management of the area under review.
  A. Internal auditors should explain the scope of work performed on each workpaper, including what was covered and not covered.

• Question 149:

  In a health care organization, the internal audit activity provides overall assurance on governance, risk, and control. The chief audit executive advises and influences senior management, and the audit strategy leverages the organization's management of risk. According to IIA guidance, which of the following stages of internal audit maturity best describes this organization?

  A. Infrastructure.
  B. Emerging.
  C. Managed.
  D. Initial.
  D. Initial.

• Question 150:

  Which method should an internal audit activity use to obtain reliable evidence to determine whether the organization's interest rates on loans were accurate?

  A. Interview senior management to discuss the loan process.
  B. Trace the loan payments to the general ledger.
  C. Recalculate the loan payment.
  D. Inspect the organization's loan agreement.
  C. Recalculate the loan payment.