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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 301:

  According to IIA guidance, which of the following actions might place the independence of the internal audit function in jeopardy?

  A. Having no active role or involvement in the risk management process.
  B. Auditing the risk management process for reasonableness.
  C. Coordinating and managing the risk management process.
  D. Participating with management in identifying and evaluating risks.
  C. Coordinating and managing the risk management process.

• Question 302:

  Because of an abundance of high priority requests from management, an internal audit activity no longer has the resources to meet all of its commitments contained in the annual audit plan. Which of the following would be the best course of action for the chief audit executive to follow?

  A. Continue with the plan and seek opportunities to adjust priorities and reallocate resources.
  B. Present a reassessment of the plan to the board and senior management for consideration.
  C. Reassess the plan and either cancel or divert resources away from the lowest priority activities.
  D. Advise the board immediately and seek their support for additional resources to meet the needs of the plan.
  B. Present a reassessment of the plan to the board and senior management for consideration.

• Question 303:

  Which two of the following considerations must an internal auditor take into account while planning an audit of an accounting system/application that has been in use for the last five years?

  The level and manner of linkages between the business's mission, objectives, and structure and the accounting system/application.

  Presence or absence of computerized and manual controls that address risks.

  Identification of risks at the application level, e.g., availability and security of the system.

  Testing of the system/application for bugs and errors.

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

• Question 304:

  Which of the following is the most common method management can use to manage risk within its risk appetite?

  A. Implementation of controls.
  B. Use of risk registers and dashboard.
  C. Frequent communication of risk appetite for operating personnel.
  D. Continuous evaluations and audits.
  A. Implementation of controls.

• Question 305:

  Which of the following would most likely reflect the best possible engagement objectives?

  A. Engagement objectives derived from risk assessment results from a company's risk function experts.
  B. Engagement objectives derived from senior management's risk assessment results.
  C. Engagement objectives derived from the internal audit activity's own risk assessment results.
  D. Engagement objectives derived from risk assessment results from both senior management and the company's risk function experts.
  C. Engagement objectives derived from the internal audit activity's own risk assessment results.

• Question 306:

  Which of the following is a requirement needed to issue an overall opinion on an organization's governance, risk management, and control processes?

  A. The overall opinion must be supported by sufficient, reliable, relevant, and useful information collected directly by internal audit staff.
  B. The overall opinion must take into account the expectations of the internal audit activity's stakeholders.
  C. The overall opinion must state the reasons supporting a favorable overall opinion.
  D. The overall opinion must be communicated in writing.
  A. The overall opinion must be supported by sufficient, reliable, relevant, and useful information collected directly by internal audit staff.

• Question 307:

  Senior IT management requests the internal audit activity to perform an audit of a complex IT area. The chief audit executive (CAE) knows that the internal audit activity lacks the expertise to perform the engagement. Which of the following is the most appropriate action for the CAE to take?

  A. Decline the audit engagement, because the Standards prohibit internal auditors from performing engagements where they lack the necessary competencies.
  B. Accept the audit engagement and use the engagement as an opportunity to develop the audit team's IT expertise while performing the audit work.
  C. Temporarily hire an experienced and knowledgeable IT analyst from the organization's IT department to lead the audit.
  D. Outsource the audit engagement to a reputable IT audit consulting firm.
  D. Outsource the audit engagement to a reputable IT audit consulting firm.

• Question 308:

  A report prepared by the internal audit activity contains several observations that disclose proprietary information regarding the organization's manufacturing process. According to the International Professional Practices Framework, which of the following is the appropriate treatment for this report?

  A. Distribute the report only to the board to protect disclosure.
  B. Disclose and distribute this information in a separate report.
  C. Remove the observations and report verbally to senior management.
  D. Require a separate non-disclosure statement from each recipient.
  B. Disclose and distribute this information in a separate report.

• Question 309:

  After becoming aware of control weaknesses indicating that a fraud could have been committed, which of the following actions should an internal auditor take next?

  A. Issue a written report identifying the control weaknesses.
  B. Perform tests directed toward the identification of other fraud indicators.
  C. Notify external auditors of the suspicion that fraud has been committed.
  D. Recommend that a fraud investigation be conducted involving internal auditors, lawyers, investigators, security personnel, and other specialists, as appropriate.
  B. Perform tests directed toward the identification of other fraud indicators.

• Question 310:

  An organization decides to create an internal audit function and hires a new chief audit executive (CAE). Which of the following should the CAE first consider when developing the internal audit process?

  A. Requirements of the external auditors to ensure an efficient coordination of audit effort.
  B. sufficient resources to adequately meet the needs of the annual audit plan.
  C. Alignment of internal audit objectives with the organization's strategic plan.
  D. An appropriate training plan for audit staff.
  C. Alignment of internal audit objectives with the organization's strategic plan.