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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 251:

  Which type of assurance engagement is conducted to determine whether a process or area is performing as intended, accomplishing its objectives, and doing so in an efficient and economical way?

  A. Compliance audit.
  B. Operational audit.
  C. Financial audit.
  D. Provider audit.
  B. Operational audit.

• Question 252:

  During an engagement, the chief audit executive (CAE) is notified that the residual risk in several key areas currently exceeds the organization's risk appetite. Upon contacting management, the CAE is advised that no action will be taken, as the existing appetite is unrealistic for current market conditions. According to IIA guidance, which of the following actions would be the most appropriate for the CAE to take?

  A. Arrange a meeting with senior management to explain and resolve this issue.
  B. Highlight this issue in the interim audit report and request operational management's response.
  C. Escalate this issue to the board and recommend a more realistic risk appetite.
  D. Hold a meeting with the CEO to obtain further guidance on how to proceed.
  C. Escalate this issue to the board and recommend a more realistic risk appetite.

• Question 253:

  The most common motivation for management fraud is the existence of:

  A. Vices, such as a gambling habit.
  B. Job dissatisfaction.
  C. Financial pressures on the organization.
  D. The challenge of committing the perfect crime.
  C. Financial pressures on the organization.

• Question 254:

  A chief audit executive agrees to conduct an engagement that will focus on customers' perceptions of the quality of the organization's products and services. Which of the following issues should be addressed first?

  A. Cost-effectiveness.
  B. Quality control.
  C. Customer complaints.
  D. Supplier deliveries.
  C. Customer complaints.

• Question 255:

  Which of the following would be most helpful to a governmental auditor searching for the existence of multiple welfare claims that were filed under different names but used the same address?

  A. Tagging and tracing.
  B. Generalized audit software.
  C. Integrated test facility.
  D. Spreadsheet analysis.
  B. Generalized audit software.

• Question 256:

  An internal auditor wants to analyze the relationship between financial performance and other non financial key performance indicators. Which of the following analytical techniques would best help the auditor?

  A. Trend analysis.
  B. Ratio analysis.
  C. Variance analysis.
  D. Vertical analysis.
  B. Ratio analysis.

• Question 257:

  According to the theory of constraints, which of the following is most influenced by various bottlenecks the organization encounters?

  A. Manufacturing.
  B. Profitability.
  C. Overheads.
  D. Quality.
  B. Profitability.

• Question 258:

  According to IIA guidance, which of the following represents sufficient information?

  A. Information that is factual, adequate, and convincing.
  B. Information that is best attainable through the use of appropriate engagement techniques.
  C. Information that supports engagement objectives and recommendations.
  D. Information that helps the organization meet its goals.
  D. Information that helps the organization meet its goals.

• Question 259:

  An internal auditor completed a consulting engagement covering a recent advertising campaign. The audit client asked the auditor to forward a copy of the report to one of the three advertising agencies used by the organization. According to IIA guidance, which of the following statements is true regarding this request?

  A. The internal auditor may communicate the results to the advertising agency as instructed by the audit client, with approval from the chief audit executive.
  B. The internal auditor may not communicate the results to this external party regardless of the engagement client's instruction.
  C. The internal auditor may send the report and is required to include instructions for the advertising agency to limit further distribution and the use of results.
  D. The internal auditor may only communicate the results verbally to the advertising agency and should not provide a hard copy.
  A. The internal auditor may communicate the results to the advertising agency as instructed by the audit client, with approval from the chief audit executive.

• Question 260:

  The chief executive officer has requested that the chief audit executive (CAE) coordinate the establishment of an enterprise risk management (ERM) program for the organization. Which of the following would be the most appropriate action for the CAE?

  A. Accept the request as the role of coordinating ERM is a core function of internal audit.
  B. Decline the request as this role compromises the CAE's objectivity.
  C. Accept the request after consulting with the board and adhering to proper safeguards.
  D. Decline the request as internal audit has limited knowledge and experience of risk at the enterprise level to undertake the assignment.
  C. Accept the request after consulting with the board and adhering to proper safeguards.