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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 171:

  A chief audit executive (CAE) is developing a work program for an upcoming engagement that will review an organization's small contracting services. Which of the following would the CAE need to consider most when developing the work program?

  A. The contracting department's staffing changes within the last year.
  B. The certifications held by the internal auditors assigned to the engagement.
  C. The internal audit activity's increase in budget and staffing for the year.
  D. The organization's recent changes to how it processes payments.
  D. The organization's recent changes to how it processes payments.

• Question 172:

  A chief audit executive (CAE) is evaluating four potential audit engagements based on the following factors: the engagement's ability to reduce risk to the organization, the engagement's ability to save the organization money, and the extent of change in the area since the last engagement. The CAE has scored the engagements for each factor from low to high, assigned points, and calculated an overall ranking. The results are shown below with the points in parentheses:

  

  If the organization has asked the CAE to consider the cost savings factor to be twice as important as any other factor, which engagements should the CAE pursue?

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

• Question 173:

  An internal control questionnaire would be most appropriate in which of the following situations?

  A. Testing controls where operating procedures vary.
  B. Testing controls in decentralized offices.
  C. Testing controls in high risk areas.
  D. Testing controls in areas with high control failure rates.
  B. Testing controls in decentralized offices.

• Question 174:

  Which of the following is the best example of an appropriate audit objective for a compliance engagement?

  A. Verify that payments for goods or services received by the organization are accurate.
  B. Determine whether cash payments were made in accordance with policies.
  C. Validate that the organization's processes for paying vendors are effective and efficient.
  D. Test the validity of data recorded in the organization's cash disbursement system.
  B. Determine whether cash payments were made in accordance with policies.

• Question 175:

  What are the five attributes an engagement supervisor looks for when reviewing audit workpapers to ensure that observations are communicated correctly?

  A. Condition, criteria, effect, cause, and recommendation.
  B. Objective, scope, title, sample size, and results.
  C. Objective, test procedures, conclusions, recommendations, and action plan.
  D. Objective, coverage, objectivity, documents organization, and completeness.
  A. Condition, criteria, effect, cause, and recommendation.

• Question 176:

  Which of the following is not an outcome of control self-assessment?

  A. Informal, soft controls are omitted, and greater focus is placed on hard controls.
  B. The entire objectives-risks-controls infrastructure of an organization is subject to greater monitoring and continuous improvement.
  C. Internal auditors become involved in and knowledgeable about the self-assessment process.
  D. Nonaudit employees become experienced in assessing controls and associating control processes with managing risks.
  A. Informal, soft controls are omitted, and greater focus is placed on hard controls.

• Question 177:

  When addressing the excessive overtime being paid to employees in an organization's customer service call center, which of the following would be most relevant for the internal auditor to use?

  1.Confirmation.

  2.Trend analysis.

  3.External benchmarking.

  4.Internal benchmarking.

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

• Question 178:

  Which of the following is the first step in the process where auditors and clients work together to evaluate the clients' system of internal control?

  A. Assess risks.
  B. Develop questionnaires.
  C. Identify and assess controls.
  D. Identify objectives.
  D. Identify objectives.

• Question 179:

  According to IIA guidance on IT, which of the following actions would be performed as part of the "Define IT Universe" stage of the IT audit plan development process?

  A. Identify significant applications that support the business operations.
  B. Assess risk and rank subjects using business risk factors.
  C. Identify how the organization structures its business operations.
  D. Select audit subjects and bundle into distinct audit engagements.
  A. Identify significant applications that support the business operations.

• Question 180:

  Which of the following will be an appropriate course of action when an auditor disagrees with a client about a well-documented audit finding?

  A. Include both the audit finding and the client's position in the audit report.
  B. Defer reporting the item and plan to perform more detailed work during the next audit.
  C. Change the finding so that it is acceptable to the client.
  D. Address the issue with senior management and the board for resolution prior to issuing the final report.
  A. Include both the audit finding and the client's position in the audit report.