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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 281:

  During an audit of a branch bank, an internal auditor learned that a series of system failures had resulted in a four-day delay in processing customers' scheduled payroll direct deposits. The first failure was that of a disk drive, followed by software and other minor failures. Which of the following controls should the auditor recommend to avoid similar delays in processing?

  A. Contingency planning.
  B. Redundancy checks.
  C. Process monitoring.
  D. Preventive maintenance.
  A. Contingency planning.

• Question 282:

  According to IIA guidance, which of the following is the responsibility of the chief audit executive regarding an organization's residual risk?

  A. Review and update the organization's risk management policy.
  B. Decide acceptable organizational risk.
  C. Establish and maintain monitoring systems for progress on actions taken by management.
  D. Consult with an external auditor on how to assess residual risk.
  C. Establish and maintain monitoring systems for progress on actions taken by management.

• Question 283:

  Which of the following would cause a company's accounts receivable turnover ratio to decrease steadily over a three-year period?

  A. An increase in the discount offered for early payment.
  B. A more liberal credit policy.
  C. Invoices provided on a weekly rather than a monthly basis.
  D. Increased cash sales.
  B. A more liberal credit policy.

• Question 284:

  An audit of a company's accounts payable found that the individuals responsible for maintaining the vendor master file could also enter vendor invoices into the accounts payable system. During the exit conference, management agreed to correct this problem. When performing a follow-up engagement of accounts payable, the auditor should expect to find that management has:

  A. Transferred the individuals who maintained the vendor master file to another department to ensure that responsibilities are appropriately segregated.
  B. Compared the vendor and employee master files to determine if any unauthorized vendors have been added to the vendor master file.
  C. Changed the access control system to prevent employees from both entering invoices and approving payments.
  D. Modified the accounts payable system to prevent individuals who maintain the vendor master file from entering invoices.
  D. Modified the accounts payable system to prevent individuals who maintain the vendor master file from entering invoices.

• Question 285:

  Which of the following methods would an auditor most likely use to document a complex sales order process?

  A. Develop a horizontal owchart, with supporting documentation for key control points.
  B. Create a critical path method chart, noting the processes involved for each step.
  C. Perform a process review, assigning time and cost to each step of the process to develop a hierarchy owchart.
  D. Utilize a systems narrative, which can be updated during subsequent audits.
  A. Develop a horizontal owchart, with supporting documentation for key control points.

• Question 286:

  Which of the following is critical to the success of an effective interview?

  A. Present audit evidence and information to support the internal auditor's line of questioning.
  B. Establish credibility, trust, and rapport.
  C. Develop flowcharts and review them with the interviewee.
  D. Observe the process and discuss it with the interviewee.
  B. Establish credibility, trust, and rapport.

• Question 287:

  During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts. Which of the following would most likely be the reason for the high volume of complaints?

  A. An ineffective customer service department.
  B. Poor controls in the invoice approval processes.
  C. Check tampering by an employee.
  D. Submission of fraudulent expense reports.
  C. Check tampering by an employee.

• Question 288:

  After completing a net present value (NPV) calculation on a proposed project, an analyst explores the change in NPV with changes in the interest rate. This additional analysis is referred to as:

  A. Decision analysis.
  B. simulation.
  C. Sensitivity analysis.
  D. Variance analysis.
  C. Sensitivity analysis.

• Question 289:

  An organization has developed a large database that tracks employees, employee Benefits, payroll deductions, job classifications, and other similar information. The internal auditor reviews the retirement Benefits plan and determines that the pension and medical Benefits have been changed several times in the past ten years. The auditor wishes to determine whether there is Justification to perform further audit investigation. The most appropriate audit procedure would be to:

  A. Review the trend of overall retirement expense over the last ten years. If the retirement expense increased, it would indicate the need for further investigation.
  B. Use generalized audit software to select a monetary-unit sample of retirement pay, and determine whether each retired employee was paid correctly.
  C. Review reasonableness of retirement pay and medical expenses on a per-person basis Stratified by which plan was in effect when the employee retired.
  D. Use generalized audit software to select an attributes sample of retirement pay, and perform detailed testing to determine whether each person chosen was paid correctly.
  C. Review reasonableness of retirement pay and medical expenses on a per-person basis Stratified by which plan was in effect when the employee retired.

• Question 290:

  The internal audit activity can be involved with systems development continuously, immediately prior to implementation, after implementation, or not at all. An advantage of continuous internal audit involvement compared to the other types of involvement is that:

  A. The cost of audit involvement can be minimized.
  B. There are clearly defined points at which to issue audit comments.
  C. Redesign costs can be minimized.
  D. The threat of lack of audit independence can be minimized.
  C. Redesign costs can be minimized.