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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 331:

  Which of the following would help internal auditors to identify duplicate invoices?

  A. Generalized audit software.
  B. Audit expert systems.
  C. Utility software.
  D. Backup software.
  A. Generalized audit software.

• Question 332:

  When constructing a staffing schedule for the internal audit activity (IAA), which of the following criteria are most important for the chief audit executive to consider for the effective use of audit resources?

  1.The competency and quali cations of the audit staff for specific assignments.

  2.The effectiveness of IAA staff performance measures.

  3.The number of training hours received by staff auditors compared to the budget.

  4.The geographical dispersion of audit staff across the organization.

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

• Question 333:

  A bank uses a risk analysis matrix to quantify the relative risk of auditable entities. The analysis involves rating auditable entities on risk factors using a scale of 1 to 10, with 10 representing the greatest risk. A partial list of risk factors and the ratings given to three of the bank's departments is provided below:

  

  Which of the following statements regarding risk in the department is true?

  A. As compared to departments A and C, department B has a stronger control system to compensate for the greater complexity of the department's transactions and dollar value of its assets.
  C. The nature of department A's control structure may be justified by the nature of the department's assets and the complexity of its transactions.
  D. The relative ranking of the departments in order of their risk, from greatest to least risk, is: A; C;
  C. The nature of department A's control structure may be justified by the nature of the department's assets and the complexity of its transactions.

• Question 334:

  Which of the following is not relevant when developing recommendations for inclusion in audit reports?

  A. Feasibility.
  B. Cost of implementation.
  C. Underlying causes.
  D. Timing of follow-up.
  D. Timing of follow-up.

• Question 335:

  The following audit observation was included in the final audit report:

  "Our review concluded that bank reconciliation statements for March and April did not show evidence of supervisory review. We recommend strict compliance with the controller's manual, which requires the department head to place their

  initials on the reconciliation statements to document their review."

  Which of the following attributes are missing from the above audit observation?

  1.Criteria.

  2.Condition.

  3.Cause.

  4.Effect.

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

• Question 336:

  An organization is experiencing a significant risk that threatens its financial well-being Senior management requested that the chief audit executive (CAE) meet with them to discuss the risk. Which of the following would best describe the CAE's responsibility at the meeting?

  A. Inform senior management of the appropriate actions they should take to control the risk
  B. Recommend that the internal audit activity provide consulting services to help minimize the risk
  C. Assume the responsibility of resolving the significant risk that will affect the organization
  D. Determine whether senior management accepted risk that may be deemed unacceptable for the organization
  D. Determine whether senior management accepted risk that may be deemed unacceptable for the organization

• Question 337:

  Which of the following is an example of a properly supervised engagement?

  A. Auditors are asked to keep a daily record of their activity for review by the auditor in charge following the engagement.
  B. The senior internal auditor requires each auditor to review and initial colleagues' workpapers for completeness and format.
  C. A new internal auditor is accompanied by an experienced auditor during a highly sensitive fraud investigation.
  D. The auditor in charge provides reasonable assurance that engagement objectives were met.
  D. The auditor in charge provides reasonable assurance that engagement objectives were met.

• Question 338:

  According to the IIA guidance, which of the following does the engagement work program test in a review of an organizational process?

  A. Process objectives.
  B. Process risks.
  C. Process controls.
  D. Process scope.
  C. Process controls.

• Question 339:

  Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a follow-up of audit recommendations when developing engagement work schedules. Does the CAEs decision violate the Standards?

  A. No, because the Standards do not specify whether follow-up is needed.
  B. No, because when there is evidence of sufficient motivation by the client, there is no need for follow-up action.
  C. Yes, because scarcity of resources is not a sufficient reason to omit follow-up action.
  D. Yes, because the Standards require the auditors to determine whether the client has appropriately implemented all of the auditor's recommendations.
  C. Yes, because scarcity of resources is not a sufficient reason to omit follow-up action.

• Question 340:

  Which of the following issues is the chief audit executive most likely to escalate to the board without delay?

  A. Management of a bank reviewed its loan portfolio and decided to write off debts that were deemed non-collectable.
  B. A company has made an investment into the development of an experimental drug, which may not prove to be successful.
  C. An operations manager did not complete the agreed action plan on time and now refuses to proceed with it.
  D. A company's factory sewage is directed to a lake, from which the local town pumps its drinking water.
  D. A company's factory sewage is directed to a lake, from which the local town pumps its drinking water.