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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 161:

  If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?

  A. The experience and knowledge of the auditor.
  B. The adverse consequences of noncompliance.
  C. The acceptable level of risk of making an incorrect audit conclusion.
  D. The cost of performing auditing procedures on sample selections.
  A. The experience and knowledge of the auditor.

• Question 162:

  When approving the final engagement report, which of the following is most critical?

  A. Opinions are adequately supported.
  B. Conclusions are reached for all objectives.
  C. Report is distributed to appropriate parties.
  D. Report is clear and concise.
  A. Opinions are adequately supported.

• Question 163:

  Which of the following is the primary reason for internal auditors to conduct interim communications with management of the area under review?

  A. To demonstrate good project oversight.
  B. To provide timely discussion of results.
  C. To demonstrate internal auditor pro ciency.
  D. To follow up on previously requested information.
  D. To follow up on previously requested information.

• Question 164:

  Which of the following accurately describes the purpose of an engagement scope?

  A. To articulate what the engagement is specifically attempting to accomplish.
  B. To provide a reference for evaluating evidence and assessing the controls.
  C. To clarify what should be reviewed during the engagement.
  D. To ensure the engagement objectives are measurable and practical.
  C. To clarify what should be reviewed during the engagement.

• Question 165:

  Which of the following statements is true regarding the communication of audit engagement observations?

  A. Criteria, condition, cause, and effect must be communicated for material observations only
  B. Criteria, condition, cause, and effect must be communicated for material observations and significant defficiencies only
  C. Criteria, condition, cause, and effect must be communicated for all engagement observations.
  D. Criteria, condition, cause, and effect do not need to be communicated for insignificant observations with adequate compensating key controls.
  C. Criteria, condition, cause, and effect must be communicated for all engagement observations.

• Question 166:

  Which of the following is an alternative strategy for quickly acquiring specialized expertise for audit engagements?

  A. Internships.
  B. Succession planning.
  C. Cosourcing.
  D. External recruitment.
  C. Cosourcing.

• Question 167:

  The chief audit executive (CAE) notes during review of the final report of an assurance engagement that management has decided to accept the risks of two significant exposures identified by the audit. Which of the following actions by the CAE would be least prudent in these circumstances?

  A. Implement follow-up procedures to monitor the potential impact of those risks.
  B. Review the working papers and conclusions as to the perceived residual risk.
  C. Meet with senior management to consider their reasoning for the decision.
  D. Meet with the auditor-in-charge to review the conclusions.
  A. Implement follow-up procedures to monitor the potential impact of those risks.

• Question 168:

  Which of the following audit steps would an internal auditor perform when reviewing cash disbursements to satisfy IIA guidance on due professional care?

  A. The calculated statistical sample size is 50 however the internal auditor believes errors exist so he decides to increase the sample size to 80
  B. The internal auditor traces serial numbers of computer equipment listed on an invoice to the fixed asset inventory
  C. The internal auditor reviews the accounts payable manager's petty cash fund and vouchers
  D. The internal auditor reviews the related invoice purchase order and receiving report for each sample selection
  D. The internal auditor reviews the related invoice purchase order and receiving report for each sample selection

• Question 169:

  During a systems development audit, software developers indicated that all programs were moved from the development environment to the production environment and then tested in the production environment. What should the auditor recommend?

  I. Implement a test environment to ensure that testing is not performed in the production environment.

  II. Require developers to move Modified programs from the development environment to the test environment and from the test environment to the production environment.

  III.

  Eliminate access by developers to the production environment.

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

• Question 170:

  Checklists used to assess audit risk have been criticized for all of the following reasons except:

  A. Providing a false sense of security that all relevant factors are addressed.
  B. Inappropriately implying equal weight to each item on the checklist.
  C. Decreasing the uniformity of data acquisition.
  D. Being incapable of translating the experience or sound reasoning intended to be captured by each item on the checklist.
  C. Decreasing the uniformity of data acquisition.