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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 201:

  Which of the following best describes why an internal audit activity would consider sending written preliminary observations to the audit client?

  A. Written observations allow for more interpretation.
  B. Written observations help the internal auditors express the significance.
  C. Written and verbal observations are equally effective.
  D. Written observations limit premature agreement.
  B. Written observations help the internal auditors express the significance.

• Question 202:

  While performing a follow-up of a concern about equipment-inventory tracking, which course of action is not necessary for the auditor to take?

  A. Ensure that the steps being taken resolve the condition disclosed by the initial finding.
  B. Ensure that controls have been implemented to prevent the issue from occurring again.
  C. Ensure that the entity has begun to experience benefits as a result of resolving the issue.
  D. Ensure that the inherent risk has been eliminated as a result of resolving the issue.
  D. Ensure that the inherent risk has been eliminated as a result of resolving the issue.

• Question 203:

  A manufacturer is under contract to produce and deliver a number of aircraft to a major airline. As part of the contract, the manufacturer is also providing training to the airline's pilots. At the time of the audit, the delivery of the aircraft had fallen substantially behind schedule while the training had already been completed. If half of the aircraft under contract have been delivered, which of the following should the internal auditor expect to be accounted for in the general ledger?

  A. Training costs allocated to the number of aircraft delivered, and the cost of actual production hours completed to date.
  B. All completed training costs, and the cost of actual production hours completed to date.
  C. Training costs allocated to the number of aircraft delivered, and 50% of contracted production costs.
  D. All completed training costs, and 50% of the contracted production costs.
  D. All completed training costs, and 50% of the contracted production costs.

• Question 204:

  What is the primary objective of an engagement supervisor's review of key activities performed during the engagement?

  A. To ensure that the engagement is completed on time and within budget
  B. To ensure that all work performed meets acceptable quality standards
  C. To ensure that management has provided suitable responses to all observations
  D. To ensure that management is satisfied with the progress of the engagement
  B. To ensure that all work performed meets acceptable quality standards

• Question 205:

  What is the chief audit executive's responsibility over an organization's residual risk?

  A. Design controls for the organization in order to address residual risk.
  B. Inform the organization's board of any business area with residual risk
  C. Design audits for all departments at the organization with residual risk
  D. Determine whether residual risk aligns with the organization's risk appetite
  D. Determine whether residual risk aligns with the organization's risk appetite

• Question 206:

  During annual internal audit planning, an organization's chief audit executive noted that management has created a comprehensive risk register with key risks identified. Which of the following statements is true regarding the use of this information?

  A. The auditors must consider management's risk assessment only when dealing with fraud engagements
  B. The auditors may use the risk assessments performed by management if the assessments are deemed sufficient
  C. The risk assessment must only be conducted at the engagement level, hence the risk register by management is not considered
  D. The professional judgement of the auditors is the only important requirement when developing annual audit plans
  B. The auditors may use the risk assessments performed by management if the assessments are deemed sufficient

• Question 207:

  When estimating the impact of an inherent risk, which of the following should internal auditors consider?

  A. The probability and frequency of occurrence.
  B. Financial and non financial factors related to the risk.
  C. The number of risks identified on the heat map.
  D. The residual risk following implementation of appropriate controls.
  C. The number of risks identified on the heat map.

• Question 208:

  Which of the following activities would be performed during a benchmarking consulting engagement?

  I. Collect data relevant to the benchmarking process.

  II. Review all business processes.

  III. Define critical success factors.

  IV.

  Identify performance gaps.

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

• Question 209:

  Which of the following is an example of internal benchmarking?

  A. Book value per common share ratio is lower than that of the prior year.
  B. Staff turnover ratio is higher than the comparable organization in the same industry.
  C. Utilities expense of the sales unit is higher than that of the customer service unit.
  D. Sales are significantly higher than the industry's average for five years.
  C. Utilities expense of the sales unit is higher than that of the customer service unit.

• Question 210:

  Many questionnaires are made up of a series of different questions that use the same response categories (for example: strongly agree, agree, neither, disagree, strongly disagree). Some designs will have different groups of respondents answer alternate versions of the questionnaire that present the questions in different orders and reverse the orientation of the endpoints of the scale (for example: agree on the right and disagree on the left). The purpose of such questionnaire variations is to:

  A. Eliminate intentional misrepresentations.
  B. Reduce the effects of pattern response tendencies.
  C. Test whether respondents are reading the questionnaire.
  D. Make it possible to get information about more than one population parameter using the same questions.
  B. Reduce the effects of pattern response tendencies.