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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 261:

  Which of the following best describes a random sample of invoices?

  A. The internal auditor selected all invoices that were signed by fewer than two managers.
  B. The internal auditor identified a starting point and chose every 15th invoice after that.
  C. The internal auditor selected all invoices above an amount she considered significant.
  D. The internal auditor sorted the invoices by vendor and chose the two most recent invoices from each.
  B. The internal auditor identified a starting point and chose every 15th invoice after that.

• Question 262:

  According to the International Professional Practices Framework, the responsibility for establishing and maintaining a system to monitor the disposition of results communicated to management falls upon:

  A. Compliance officer.
  B. Chief audit executive.
  C. Senior management.
  D. Risk manager.
  B. Chief audit executive.

• Question 263:

  Which of the following is the most appropriate objective for establishing a professional development plan for the internal audit activity?

  A. A plan that focuses on furthering the independence of the internal audit activity.
  B. A plan that ensures internal auditors collectively possess expertise in various fields to avoid outsourcing.
  C. A plan based on individual preferences and proposals, which helps internal auditors achieve greater success.
  D. A plan that focuses on filling gaps in the current skills needed to complete audit objectives.
  D. A plan that focuses on filling gaps in the current skills needed to complete audit objectives.

• Question 264:

  Which of the following analytical procedures is most useful to an internal auditor who is comparing loan default rates with bank industry averages?

  A. Trend analysis.
  B. Benchmarking.
  C. Ratio analysis.
  D. Regression analysis.
  B. Benchmarking.

• Question 265:

  A toy manufacturer receives certain components from an overseas supplier and uses them to assemble final products. Recently, quality reviews have identified numerous issues regarding the components' compliance with mandatory quality standards. Which type of engagement would be most appropriate to assess the root causes of the quality issues?

  A. A risk assessment.
  B. An operational audit.
  C. A third-party audit.
  D. A fraud investigation.
  B. An operational audit.

• Question 266:

  What is the primary factor that determines the depth and breadth of audit follow-up?

  A. The engagement client's written response to the audit findings.
  B. The auditor's assessment of risk associated with the audit findings.
  C. The auditor's assessment of personnel responsible for correcting audit findings.
  D. The availability of audit personnel and financial resources.
  B. The auditor's assessment of risk associated with the audit findings.

• Question 267:

  Production managers for a manufacturing company are authorized to prepare emergency purchase orders for raw materials. These manually prepared orders do not go through the purchasing department and do not require a receiving report. The managers forward the invoice and purchase order to the accounting department for payment. Which of the following internal controls would efficiently prevent abuse of this system?

  A. Institute a company policy requiring rotation of orders among several suppliers.
  B. Require a manual receiving report from the warehouse prior to payment.
  C. Forbid the use of emergency purchase orders.
  D. Review the level of safety stock.
  B. Require a manual receiving report from the warehouse prior to payment.

• Question 268:

  An internal audit activity is participating in the due diligence work for an acquisition that a company is considering. One engagement objective is to determine if the acquisition's accounts payable contain all outstanding liabilities. Which of the following audit procedures would not be relevant for this objective?

  A. Examine supporting documentation of subsequent (after-period) cash disbursements and verify period of liability.
  B. Send Confirmations, including zero-balance accounts, to vendors with whom the company normally does business.
  C. Select a sample of accounts payable from the accounts payable list and verify the supporting receiving reports, purchase orders, and invoices.
  D. Trace receiving reports issued before the period end to the related vendor invoices and accounts payable list.
  C. Select a sample of accounts payable from the accounts payable list and verify the supporting receiving reports, purchase orders, and invoices.

• Question 269:

  Which of the following statements is true regarding internal control questionnaires (ICQs)?

  A. ICQs are most useful in more organic, decentralized organizations with specialized departmental or regional characteristics.
  B. An ICQ can be used effectively either by sending it in advance for management of the area under review to complete or by testing each procedure and recording the results.
  C. An ICQ is not an efficient tool, as it can only inquire about controls and it does not test them.
  D. ICQs are also known as checklist audits and encourage management of the area under review to answer "no" or "yes" more accurately.
  B. An ICQ can be used effectively either by sending it in advance for management of the area under review to complete or by testing each procedure and recording the results.

• Question 270:

  According to IIA guidance, which of the following accurately describes the responsibilities of the chief audit executive with respect to the final audit report?

  1.Coordinate post-engagement conferences to discuss the final audit report with management.

  2.Include management's responses in the final audit report.

  3.Review and approve the final audit report.

  4.Determine who will receive the final audit report.

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