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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 271:

  The chief audit executive (CAE) of a new organization is in the process of determining the manner in which audit reports will be distributed and to whom. According to the Standards, which of the following is the most appropriate course of action for the CAE to take to develop this distribution process?

  A. The process should be determined in meetings with the external auditor and senior management to ensure alignment with external reporting.
  B. The CAE should meet with senior management for their input, but finalize the distribution of all reports with the board.
  C. The CAE should independently implement the report distribution, using best judgment to ensure that all relevant stakeholders are informed.
  D. The CAE should request that senior management and the board meet to determine the most appropriate reporting method.
  B. The CAE should meet with senior management for their input, but finalize the distribution of all reports with the board.

• Question 272:

  Which of the following statements is false regarding audit criteria?

  A. Audit criteria should be consistent across audit assignments.
  B. Audit criteria should represent reasonable standards against which to assess existing conditions.
  C. Audit criteria should provide exibility but allow identification of nonadherence.
  D. Audit criteria should equate to good or acceptable management practices.
  A. Audit criteria should be consistent across audit assignments.

• Question 273:

  Which type of engagement would be the most appropriate to assess the maturity and rigor of the organizationwide risk management process of a target entity that management is considering acquiring?

  A. A due diligence engagement.
  B. An operational audit engagement.
  C. A feasibility study engagement.
  D. A risk and control self-assessment engagement.
  A. A due diligence engagement.

• Question 274:

  Information gathered in a forensic investigation of business fraud is usually gathered with which of the following standards in mind?

  A. Generally Accepted Auditing Standards.
  B. Generally Accepted Accounting Principles.
  C. The International Professional Practices Framework.
  D. Legal evidence.
  D. Legal evidence.

• Question 275:

  The chief audit executive (CAE) determined that the residual risk identified in an assurance engagement is acceptable. When should this be communicated to senior management?

  A. When the CAE reports the audit outcome to senior management.
  B. When the residual risk is identified, before the engagement is complete.
  C. Immediately, as residual risk should be communicated as soon as possible.
  D. When management of the area under review has resolved and mitigated the residual risk.
  C. Immediately, as residual risk should be communicated as soon as possible.

• Question 276:

  Which of the following is the next step in understanding a business process once an internal auditor has identified the process?

  A. Determine process outputs.
  B. Determine process inputs.
  C. Determine process activities.
  D. Determine process goals.
  D. Determine process goals.

• Question 277:

  What information would be most useful to an internal auditor who is attempting to identify specific processes to include in the scope of an assurance engagement?

  A. Recent organizationwide recognition awards given to employees within the area.
  B. The timing of the most recent audit of the area.
  C. Management's presentation to the board regarding recent area achievements.
  D. Recent area performance indicators against productivity metrics.
  D. Recent area performance indicators against productivity metrics.

• Question 278:

  The chief audit executive is completing the audit plan. According to IIA guidance, which of the following is the best method of selecting the audits to be completed?

  A. A rotational audit plan with core audits being done every two to four years.
  B. A risk-based audit plan that also covers important operational areas.
  C. An audit plan based upon the previous audit results and findings.
  D. An audit plan based upon responses from management on key risk areas.
  D. An audit plan based upon responses from management on key risk areas.

• Question 279:

  During an engagement in one of the subsidiaries of an organization, an internal auditor noted the following in the workpapers:

  "As a subsidiary of a multinational organization in this particular country, the entity is required to register annually with the respective ministry. However, the subsidiary did not submit the required documentation for registration during the prior year. Failure to comply with internal and external regulations could lead to penalties or fines from the respective authorities. It is recommended that the management of the subsidiary ensures compliance with the relevant legislation. As a recoverable action, management should register the subsidiary in the current year as soon as possible."

  What part of this narrative represents a condition of the observation made by auditors in the final report?

  A. "...the subsidiary did not submit required documentation for registration in the prior year."
  B. "...the entity is required to register annually with the respective ministry."
  C. "...failure to comply with internal and external regulations might lead to penalties or fines from the respective authorities."
  D. "...management should register the subsidiary in the current year as soon as possible."
  A. "...the subsidiary did not submit required documentation for registration in the prior year."

• Question 280:

  As part of the preliminary survey, an internal auditor sent an internal control questionnaire to the accounts payable function. Based on the questionnaire responses, the auditor determines that there is no established procedure for adding and approving new vendors. What would the auditor do next?

  A. Determine that this situation is acceptable and focus on more significant issues.
  B. Document the issue in the draft audit report.
  C. Document the observation for further follow up when testing the operating effectiveness of controls.
  D. Interview the personnel associated with this observation.
  D. Interview the personnel associated with this observation.