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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 351:

  Productivity statistics are provided quarterly to a company's board of directors. An auditor checked the ratios and other statistics in the four most recent reports. The auditor used scratch paper and copies of the board reports to verify the

  accuracy of computations and compared the data used in the computations with supporting documents. The auditor wrote a note describing this work for the workpapers and then discarded the scratch paper and report copies. The auditor's

  note stated.

  "The ratios and other statistics in the quarterly board reports were checked for the last four quarters, and appropriate supporting documents were examined. All amounts appear to be appropriate." In this situation:

  A. Four quarters is not a large enough sample on which to base a conclusion.
  B. The auditor's workpapers are not sufficient to facilitate an efficient review of the auditor's work.
  C. The auditor should have included the scratch paper in the workpapers.
  D. The auditor should have considered whether the information in the board report was compiled efficiently.
  B. The auditor's workpapers are not sufficient to facilitate an efficient review of the auditor's work.

• Question 352:

  The chief audit executive (CAE) is adding a new audit position to the team. According to the International Professional Practices Framework, which of the following candidates would the CAE be least likely to accept for the position?

  A. The candidate is applying for an IT audit position, while originally coming from an IT background, but has only experiences of financial and compliance audits in the previous position.
  B. The candidate is knowledgeable about potential indicators of fraud including typical risks, but has only participated as a staff auditor in one investigative fraud audit.
  C. The candidate meets the minimum educational requirements established by the chief audit executive, but has less formal education than any of the other candidates being considered.
  D. The candidate provides examples of previous reports demonstrating excellent writing skills, but lacks the ability to clearly communicate ideas and conclusions in a verbal setting.
  D. The candidate provides examples of previous reports demonstrating excellent writing skills, but lacks the ability to clearly communicate ideas and conclusions in a verbal setting.

• Question 353:

  Which of the following is the most important concept to be included in a consulting engagement agreement?

  A. Define the duties and responsibilities needed from management to perform the engagement.
  B. Disclose the fact that auditors who perform the work may not be subject matter experts in the topic of the review.
  C. Clarify that matters discovered during the engagement may also be reported to senior management and the audit committee.
  D. Disclose the fact that follow-up reviews may be conducted to ensure that recommendations are implemented adequately.
  C. Clarify that matters discovered during the engagement may also be reported to senior management and the audit committee.

• Question 354:

  Which of the following is the primary purpose of financial statement audit engagements?

  A. To assess the efficiency and effectiveness of the accounting department.
  B. To evaluate organizational and departmental structures, including assessments of process flows related to financial matters.
  C. To provide a review of routine financial reports, including analyses of selected accounts for compliance with generally accepted accounting principles.
  D. To provide an analysis of business process controls in the accounting department, including tests of compliance with internal policies and procedures.
  C. To provide a review of routine financial reports, including analyses of selected accounts for compliance with generally accepted accounting principles.

• Question 355:

  The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality assessment program. According to IIA guidance, which of the following would be part of this program?

  A. Assessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.
  B. Assessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.
  C. Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.
  D. Compliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.
  C. Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.

• Question 356:

  A corporate merger decision prompts the chief audit executive (CAE) to propose interim changes to the existing annual audit plan to account for emerging risks. Which of the following is the most appropriate action for the CAE to take regarding the changes made to the audit plan?

  A. Present the revised audit plan directly to the board for approval.
  B. Communicate with the chief financial officer and present the revised audit plan to the CEO for approval.
  C. Present the revised audit plan directly to the CEO for approval.
  D. Communicate with the CEO and present the revised audit plan to the board for approval.
  B. Communicate with the chief financial officer and present the revised audit plan to the CEO for approval.

• Question 357:

  During a review of the organization's waste management processes, the internal auditor discovered that wastewater is being disposed of inappropriately. The auditor's recommendations, suggested to mitigate the risk of regulatory sanctions

  and reputational damages, were accepted and timelines for implementation were agreed. However, during the internal audit activity's periodic follow-up exercise, management indicated that the recommendation was too expensive to

  implement and the current disposal method has been cost-effective.

  What should the chief audit executive do in this case?

  A. Nothing, as the internal audit activity has fulfilled its responsibility of providing recommendations to mitigate the risks to which the organization is exposed.
  B. Contact the regulatory agency responsible for monitoring such matters in order to convince management to implement the recommendations.
  C. Convene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.
  D. Highlight the current exposure to the external auditors so they too can highlight the issue and further pressure management to address the concern.
  C. Convene a meeting with senior management and discuss the issue and the potential impact it may have on the organization.

• Question 358:

  Which of the following statements is generally true regarding audit engagement planning?

  A. The best source for detailed process information is senior management.
  B. Audit objectives should be general and do not change.
  C. Computer-assisted audit techniques are typically not useful during engagement planning.
  D. Internal auditors should prepare a detailed audit program for testing controls.
  B. Audit objectives should be general and do not change.

• Question 359:

  Why should internal audit workpapers be presented in a consistent format?

  A. The internal auditor's professional judgment regarding the severity of the issue.
  B. The follow-up requirements as mandated by the internal audit charter.
  C. The availability of management to meet with the internal auditor.
  D. The length of time until the next scheduled audit of the area.
  A. The internal auditor's professional judgment regarding the severity of the issue.

• Question 360:

  Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?

  A. Strategic plans reflect the organization's business objectives and overall attitude toward risk.
  B. Strategic plans are helpful to identify major areas of activity, which may direct the allocation of internal audit activity resources.
  C. Strategic plans are likely to show areas of weak financial controls.
  D. The strategic plan is a relatively stable document on which to base audit planning.
  A. Strategic plans reflect the organization's business objectives and overall attitude toward risk.