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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 191:

  Which of the following is not a reason for an internal auditor to prepare an audit plan before the detailed audit work begins?

  A. The objectives of the audit should be set.
  B. The organization's management should be informed about the work to be performed.
  C. Attention should be devoted toward the key audit areas.
  D. The timing of the audit should be set.
  B. The organization's management should be informed about the work to be performed.

• Question 192:

  Which of the following statements is true regarding internal controls?

  A. For assurance engagements, internal auditors should plan to assess the effectiveness of all entity-level controls.
  B. Poorly designed or defficient entity-level controls can prevent well-designed process controls from working as intended.
  C. During engagement planning; internal auditors should not discuss the identified key risks and controls with management of the area under review, to prevent tipping off probable audit tests.
  D. Reviewing process maps and owcharts is an appropriate method for the internal auditor to identify all key risks and controls during engagement planning.
  B. Poorly designed or defficient entity-level controls can prevent well-designed process controls from working as intended.

• Question 193:

  Which of the following should be included in a privacy audit engagement?

  1.Assess the appropriateness of the information gathered.

  2.Review the methods used to collect information.

  3.Consider whether the information collected is in compliance with applicable laws.

  4.Determine how the information is stored.

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

• Question 194:

  An internal auditor is conducting a financial audit. Which of the following audit procedures is most appropriate when existing internal controls are weak?

  A. Analytical procedures.
  B. Detail testing.
  C. Test of design.
  D. Test of control.
  B. Detail testing.

• Question 195:

  Because of a new marketing initiative, an organization has reduced requirements for extending credit to new customers. As a result, outstanding accounts receivable as a percentage of revenue has increased significantly during the past two years. Which of the following would be least useful in monitoring this finding?

  A. Updates from the manager of accounts receivable regarding collection of outstanding receivables.
  B. Updates from the information technology division regarding development of a new accounts receivable system.
  C. Updates from the controller regarding the status of corrective actions.
  D. Updates from the credit and marketing personnel tasked with reevaluating credit policies.
  B. Updates from the information technology division regarding development of a new accounts receivable system.

• Question 196:

  During an environmental compliance engagement, an internal auditor noticed that there was a significant discrepancy between physical inventory stock and accounting data, which may indicate a potential theft. Which would be the most appropriate next step for the auditor to take?

  A. Include this observation in the final engagement report.
  B. Provide a verbal interim communication to management.
  C. Formally inform management, external auditors, and external authorities.
  D. Disregard the issue, as it is not relevant to the nature of the engagement.
  B. Provide a verbal interim communication to management.

• Question 197:

  Which of the following audit planning activities adds the least value in understanding the current risk exposures facing the corporation?

  A. Review of organizational strategic plans and operational plans.
  B. Consultation with senior management and the audit committee.
  C. Review of the external auditor's risk assessment.
  D. Review of corporate performance reporting and benchmarking.
  D. Review of corporate performance reporting and benchmarking.

• Question 198:

  Which of the following types of contracts would provide the least incentive for a contractor to achieve economy and efficiency?

  A. Lump-sum contract.
  B. Cost-plus contract.
  C. Unit-price contract.
  D. Indefinite delivery contract.
  B. Cost-plus contract.

• Question 199:

  A key to effective benchmarking in a consulting engagement is identifying the issues that can be:

  A. Reviewed by all internal audit staff members.
  B. Shared with all internal audit customers.
  C. Measured and controlled by the engagement client.
  D. Discussed with the board or audit committee.
  C. Measured and controlled by the engagement client.

• Question 200:

  Which of the following would best contribute to the success of a guest auditor program that allows people from other areas of the organization to serve as subject matter experts?

  A. Selecting guest auditors whose work has recently been audited by the internal audit activity.
  B. Recommending the guest auditor to design the internal audit program and perform testing procedures.
  C. Soliciting feedback from the guest auditor once the engagement is complete.
  D. Enabling the guest auditor to interact with internal audit staff to identify mutually beneficial opportunities.
  D. Enabling the guest auditor to interact with internal audit staff to identify mutually beneficial opportunities.