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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 151:

  When developing recommendations to address defficiencies, the internal auditor should place the greatest emphasis on which of the following?

  A. The effect of possible consequences that will convince management to take a corrective action.
  B. The specific suggestions regarding which actions should be taken to eliminate defficiencies in controls.
  C. The role of compensating controls that need to function properly in case primary controls fail.
  D. The reasons why the observed conditions occurred or potentially could occur.
  B. The specific suggestions regarding which actions should be taken to eliminate defficiencies in controls.

• Question 152:

  An internal auditor has been assigned to perform a quality audit on a manufacturing plant. Which course of action should the auditor perform first?

  A. Compare the planned outputs with the actual outputs.
  B. Ascertain the costs of materials purchased.
  C. Evaluate the plant's ability to meet production quotas.
  D. Review the levels of scrap and rework.
  D. Review the levels of scrap and rework.

• Question 153:

  Which of the following evaluation criteria would be the most useful to help the chief audit executive determine whether an external service provider possesses the knowledge, skills, and other competencies needed to perform a review?

  A. The financial interest the service provider may have in the organization.
  B. The relationship the service provider may have had with the organization or the activities being reviewed.
  C. Compensation or other incentives that may be applicable to the service provider.
  D. The service provider's experience in the type of work being considered.
  D. The service provider's experience in the type of work being considered.

• Question 154:

  When the internal audit activity does not have sufficient time to complete its usual root cause analysis, which of the following is most appropriate?

  A. The chief audit executive may recommend that management conduct further work to identify the root cause and address the issue.
  B. Internal auditors should nish the engagement without conducting the root cause analysis and draft the audit report, though the report would not be considered complete until the analysis is concluded.
  C. Internal auditors must adjust their future engagement schedule to ensure that the root cause analysis is always performed before the engagement is concluded.
  D. Internal auditors should instead perform a Pareto rule analysis.
  B. Internal auditors should nish the engagement without conducting the root cause analysis and draft the audit report, though the report would not be considered complete until the analysis is concluded.

• Question 155:

  An auditor decides to perform an inventory turnover analysis for both raw materials inventory and finished goods inventory. The analysis would be potentially useful in:

  I. Identifying products for which management has not been attuned to changes in market demand.

  II. Identifying potential problems in purchasing activities.

  III.

  Identifying obsolete inventory.

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

• Question 156:

  A company's policy requires that all customers be treated in a fair and consistent manner. Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?

  A. Compare the aging of outstanding receivables due from each customer.
  B. Compare credit reports with annual sales for a sample of customers.
  C. Compare the ratio of outstanding receivables to the authorized credit limit for each customer.
  D. Compare the sales discounts offered to each customer.
  D. Compare the sales discounts offered to each customer.

• Question 157:

  Which of the following attribute sampling methods would be most appropriate to use to measure the total misstatement posted to an accounts payable ledger?

  A. Stop-or-go sampling.
  B. Probability-to-proportional size sampling.
  C. Classical variable sampling.
  D. Discovery sampling.
  C. Classical variable sampling.

• Question 158:

  Which of the following actions should the chief audit executive take when senior management decides to accept risks by choosing to do business with a questionable vendor?

  A. Persuade senior management to take appropriate action.
  B. Cancel issuing the engagement report due to the assumed risks.
  C. Accept senior management's assumption of the risks.
  D. Discuss the issue with the board for them to take appropriate action.
  C. Accept senior management's assumption of the risks.

• Question 159:

  An internal auditor was assigned to review controls in the accounts payable function. Most of the accounts payable processes are performed by a third-party service provider. The auditor included in the audit report a number of control defficiencies involving processes performed by the service provider. The service provider requested a copy of the report. Which of the following would be the most appropriate response from the chief audit executive (CAE)?

  A. The CAE would automatically send a copy of the report to the service provider, as many of the findings relate to the area managed by the service provider.
  B. The CAE may distribute the report to the service provider at no cost, after consulting with legal counsel and the chief compliance officer.
  C. The CAE may provide a copy of the audit report to the service provider if an agreement is signed and the service provider agrees to reimburse the cost of the audit.
  D. The CAE should benchmark with other organizations in the industry by consulting with colleagues and distribute the report only if it is an acceptable practice in the industry.
  A. The CAE would automatically send a copy of the report to the service provider, as many of the findings relate to the area managed by the service provider.

• Question 160:

  Which of the following is an acceptable compliance audit for the chief audit executive to include on the annual audit plan, even though there is little inherent risk of noncompliance in that area?

  A. An audit of a new multi-million dollar vendor contract.
  B. An audit of a department that has not been audited in over 10 years.
  C. An audit of a major revenue-generating department that has not been audited in last few years.
  D. An audit of a new regulation required to be audited.
  A. An audit of a new multi-million dollar vendor contract.