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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 211:

  Which of the following internal audit procedures commonly involves sampling?

  A. Confirmation and financial statement analysis.
  B. Reperformance and inspection.
  C. Vouching and tracing.
  D. Trend analysis and benchmarking.
  B. Reperformance and inspection.

• Question 212:

  An internal audit activity has been asked to coordinate compliance efforts with the quality assurance department. Which of the following statements is true about this situation?

  A. The proposed coordination of compliance efforts would impair the independence of the internal audit activity. Therefore, the proposed situation should be declined.
  B. The situation is acceptable if the internal audit activity is not involved in designing procedures or installing and conducting operational activities.
  C. Compliance activities should be undertaken whenever proposed because they add significant value to the organization and support efforts to mitigate risks.
  D. The objectivity of the internal auditors who participate in coordinating the compliance efforts would be impaired. Therefore, internal auditors should decline the proposed situation.
  B. The situation is acceptable if the internal audit activity is not involved in designing procedures or installing and conducting operational activities.

• Question 213:

  According to IIA guidance, organizations have the most influence on which element of fraud?

  A. Opportunity.
  B. Rationalization.
  C. Pressure.
  D. Incentives.
  A. Opportunity.

• Question 214:

  When establishing the internal audit activity's annual plan, which of the following would be the best source of potential audit engagement topics?

  A. The organization's budget.
  B. Operations involving cash transactions.
  C. Recent changes in management objectives.
  D. Risk factors utilized in the organization's risk models.
  C. Recent changes in management objectives.

• Question 215:

  An internal auditor is preparing an engagement work program to assess the procurement process. Which of the following must be stated in the work program, in accordance with the Standards?

  A. Procurement statistics by contractor and by tender value.
  B. A summary of procurement rules and regulations.
  C. The number of work hours required to complete each task.
  D. Audit procedures that are going to be conducted.
  D. Audit procedures that are going to be conducted.

• Question 216:

  An organization must prepare and report critical loan information to the government. The report contains 121 data fields for each loan, and the final report must have an error rate of less than 5%. Internal auditors reviewed half of the loan portfolio and discovered that the error rate was greater than 50% due to errors in two data fields on each loan. What is the most appropriate next step for the audit team?

  A. Test the remaining half of the portfolio and provide management with an audit report that includes the final documented results.
  B. Discuss the finding with management verbally prior to issuing a draft written report and reevaluate the process flow to identify the control gap.
  C. Due to the unexpected high error rate, consider deleting the current test results and retesting the loans to ensure that a testing error did not occur.
  D. Conclude that the error rate is immaterial because only two of the 121 data elds had errors, which is less than 5%.
  B. Discuss the finding with management verbally prior to issuing a draft written report and reevaluate the process flow to identify the control gap.

• Question 217:

  After issuance of the engagement final communication for an audit of an organization's accounts payable function, which of the following should be sent satisfaction surveys?

  I. Manager of disbursements.

  II. Controller.

  III. Chief operating officer.

  IV.

  Audit committee members.

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

• Question 218:

  Which of the following would be the most reliable source of documentary evidence?

  A. Confirmation letters.
  B. Remittance advices.
  C. Policy statements.
  D. Canceled checks.
  A. Confirmation letters.

• Question 219:

  Management has taken immediate action to address an observation received during an audit of the organization's manufacturing process. Which of the following is true regarding the validity of the observation closure?

  A. Valid closure requires evidence that ensures the corrected process will function as expected in the future.
  B. Valid closure requires the client to address not only the condition, but also the cause of the condition.
  C. Valid closure of an observation ensures it will be included in the final engagement report.
  D. Valid closure requires assurance from management that the original problem will not recur in the future.
  B. Valid closure requires the client to address not only the condition, but also the cause of the condition.

• Question 220:

  New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide.

  A. Feedback control data.
  B. Irrelevant and argumentative information.
  C. Evidence that the new credit policies do not meet the stated corporate objective to improve collections.
  D. A statistically valid conclusion about the impact of the new credit policies on customer goodwill.
  A. Feedback control data.