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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 241:

  A new internal auditor is assigned to assess key risks of electricity sales to business clients and wants to gain an understanding of the business. Which of the following is likely to yield the best understanding of significant risks and related controls?

  A. A review of the mission statement and long-term strategy of the company.
  B. A set of interviews with a sample of the business clients.
  C. An analysis of a sample of electricity contracts concluded with business customers.
  D. An interview with the manager who is responsible for electricity sales.
  C. An analysis of a sample of electricity contracts concluded with business customers.

• Question 242:

  The final engagement communication contains the following observation:

  "The internal auditor discovered that three of the 10 contracts reviewed failed to meet the organization's competitive bidding requirements. Management explained that senior management deemed these purchases to be critical and awarded

  them as sole-source."

  Which of the following components is missing in the documentation of the observation?

  A. Criteria.
  B. Effect.
  C. Condition.
  D. Cause.
  D. Cause.

• Question 243:

  Which of the following should the chief audit executive do when evaluating the possibility of relying on external auditors' work?

  A. Perform comprehensive background checks on all independent auditors on the engagement.
  B. Recalculate all financial calculations to confirm competency.
  C. Examine objectivity and any perceived or actual conflicts of interest.
  D. Review audit tests employed in all previous audits.
  C. Examine objectivity and any perceived or actual conflicts of interest.

• Question 244:

  According to IIA guidance, which of the following is the least appropriate role for the internal audit activity in the organization's risk management program?

  A. Conducting full investigations of suspected fraud.
  B. Monitoring the organization's whistle-blower hotline.
  C. Assessing the risk of fraudulent activity in the organization.
  D. Providing ethics training sessions to organization staff.
  C. Assessing the risk of fraudulent activity in the organization.

• Question 245:

  In which of the following situations would an internal auditor consider the need to outsource competencies and skills?

  A. During the inspection of a wind turbine, an internal auditor notices that some replaced parts look used. According to purchase documents, the parts still have a long lifespan.
  B. The auditor believes that the audit client's actions contradict the organization's code of conduct. The audit client disagrees and says his actions are for the organization's benefit.
  C. An audit team member is allocated to conduct an assurance engagement in the sales unit. However, the same auditor performed an assurance engagement in that area just one year prior.
  D. During an inventory count, the auditor ascertained that some goods were missing. The audit client argues that the auditor does not understand how inventory should be counted.
  D. During an inventory count, the auditor ascertained that some goods were missing. The audit client argues that the auditor does not understand how inventory should be counted.

• Question 246:

  Which of the following statements is true in regard to policies and procedures for guiding the internal audit activity?

  A. A small internal audit activity may be managed informally.
  B. All internal audit activities need formal policies and procedures to guide them regardless of size.
  C. A large internal audit activity may be managed informally if the chief audit executive decides to do so.
  D. There is no need for separate policies and procedures if audits are conducted in accordance with The IIA's International Professional Practices Framework.
  D. There is no need for separate policies and procedures if audits are conducted in accordance with The IIA's International Professional Practices Framework.

• Question 247:

  New environmental regulations require the board tofficertify that the organization's reported pollutant emissions data is accurate. The chief audit executive (CAE) is planning an audit to provide assurance over the organization's compliance with the environmental regulations. Which of the following groups or individuals is most important for the CAE to consult to determine the scope of the audit?

  A. The audit committee of the board.
  B. The environmental, health, and safety manager.
  C. The organization's external environmental lawyers.
  D. The organization's insurance department.
  B. The environmental, health, and safety manager.

• Question 248:

  Which of the following sources of audit evidence is most reliable?

  A. Evidence obtained directly from an untested third party.
  B. Uncorroborated audit evidence obtained indirectly from an employee.
  C. Undocumented audit evidence obtained directly from a manager.
  D. Timely audit evidence obtained directly from a customer.
  D. Timely audit evidence obtained directly from a customer.

• Question 249:

  Which of the following situations is most critical for the chief audit executive to report to the board?

  A. The chief audit executive disagreed with the business unit manager's initial decision to accept a particular risk. Management ultimately agreed to address the risk only after discussing the issue with senior management.
  B. A staff internal auditor had difficulties completing a portion of the audit because management of the area under review was unwilling to cooperate and provide information timely.
  C. The internal audit activity was restructured, which resulted in a significant change in responsibilities among audit managers and supervisors for some audits.
  D. The resignation of an internal audit manager during the year caused the chief audit executive to defer a number of audit engagements to the following year.
  A. The chief audit executive disagreed with the business unit manager's initial decision to accept a particular risk. Management ultimately agreed to address the risk only after discussing the issue with senior management.

• Question 250:

  An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. The best control to ensure that the table is updated correctly for only valid pay changes would be to:

  A. Limit access to the data table to management and line supervisors who have the authority to determine pay rates.
  B. Require a supervisor in the department, who does not have the ability to change the table, to compare the changes to a signed management authorization.
  C. Ensure that adequate edit and reasonableness checks are built into the automated system.
  D. Require that all pay changes be signed by the employee to verify that the change goes to a bona de employee.
  B. Require a supervisor in the department, who does not have the ability to change the table, to compare the changes to a signed management authorization.