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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 371:

  An internal auditor is conducting an assessment of the organization's fraud controls. Which of the following would not be considered a preventive control?

  1.Daily report that identifies unsuccessful system log-in attempts.

  2.Weekly management communication with tips on identifying possible fraud.

  3.E-mail alert sent to management for checks issued over $100,000.00.

  4.New hire training to explain fraud and employee misconduct.

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

• Question 372:

  During an audit of the organization's health and safety (HandS) division, an internal auditor raised a finding that the quarterly fire drill was not performed by the HandS manager, as required by the HandS policy. The human resources manager informed the auditor that the HandS manager left the organization six months ago, and the vacancy has not been filled. Which of the following is an appropriate recommendation for this finding?

  A. Fire drills may be suspended until a new HandS manager is hired.
  B. The HandS policy should be updated to specify that fire drills can be performed less frequently if the HandS manager is unavailable.
  C. The responsibility for fire drills should be reassigned temporarily to another employee while the HandS manager role is vacant.
  D. The HR manager should be sanctioned in line with the disciplinary policy.
  C. The responsibility for fire drills should be reassigned temporarily to another employee while the HandS manager role is vacant.

• Question 373:

  According to IIA guidance, which of the following objectives was most likely formulated for a non-assurance engagement?

  A. The internal audit activity will assess the effects of changes in maintenance strategy on the availability of production equipment.
  B. The internal audit activity will inform management on the possible risks of moving the data warehouse to a cloud server maintained by a third party.
  C. The internal audit activity will ascertain whether the data center security arrangements are compliant with agreed terms.
  D. The internal audit activity will ensure equipment downtime risks have been managed in accordance with the internal policy.
  C. The internal audit activity will ascertain whether the data center security arrangements are compliant with agreed terms.

• Question 374:

  Which of the following would be the most effective method to prevent installation of new equipment that does not meet environmental permit requirements, or to prevent modification of current processes in such a way that they no longer meet permit requirements?

  A. Require that the environmental compliance department perform regular inspections of the manufacturing facility to identify new equipment or process modifications in progress.
  B. Rely on annual inspections by various regulatory agencies to identify equipment or processes that require a permit.
  C. Require that the staff of the environmental compliance department attend monthly safety meetings in different parts of the facility so that they can hear directly from the workers about any changes.
  D. Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.
  D. Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.

• Question 375:

  The chief audit executive (CAE) decided that based on management's oral response, the action taken on an audit observation for a minor improvement in the client's process is sufficient and no further follow-up is necessary. Which of the following would be the best statement regarding the action of the CAE?

  A. The CAE action is not acceptable, as a follow-up audit is needed to ensure that action is really taken by management.
  B. The CAE action is not acceptable, as follow-up on the issue is critical until a written response is obtained from management.
  C. The CAE action is acceptable as long as the follow-up is sufficient when weighed against the relative importance of the recommendation.
  D. The CAE action is acceptable as long as the issue has been escalated to the board to get their position on the issue.
  C. The CAE action is acceptable as long as the follow-up is sufficient when weighed against the relative importance of the recommendation.

• Question 376:

  Which of the following factors should a chief audit executive consider when determining the audit universe?

  1.Components of the organization's strategic plan.

  2.Inputs from senior management and the board.

  3.Views of competitors and business associates.

  4.Results of exit interviews with departing employees.

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

• Question 377:

  According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization's cash disbursements process?

  A. The accounts payable supervisor, accounts payable manager, and controller.
  B. The accounts payable manager, purchasing manager, and receiving manager.
  C. The accounts payable supervisor, controller, and treasurer.
  D. The accounts payable manager, chief financial officer, and audit committee.
  A. The accounts payable supervisor, accounts payable manager, and controller.

• Question 378:

  The chief audit executive (CAE) of a large retail operation believes that senior management has accepted a level of risk that exceeds the organization's current risk tolerance with respect to a major expansion. The CAE plans to meet with

  senior management to discuss these concerns. According to IIA guidance, which of the following would be an appropriate course of action in preparation for this meeting? Understand management's basis for the decision.

  Advise the board of the concern and upcoming meeting.

  Ascertain which members of management have accepted the risk.

  Determine if management has the authority to accept the risk.

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

• Question 379:

  A manufacturing process could create hazardous waste at several production stages, from raw materials handling to finished goods storage. If the objective of a pollution prevention audit engagement is to identify opportunities for minimizing waste, in what order should the following opportunities be considered?

  I. Recycling and reuse.

  II. Elimination at the source.

  III. Energy conservation.

  IV.

  Recovery as a usable product Treatment.

  A. V, II, IV, I, III.
  B. IV, II, I, III, V.
  C. I, III, IV, II, V.
  D. III, IV, II, V, I.
  B. IV, II, I, III, V.

• Question 380:

  The chief risk officer (CRO) of a large manufacturing organization decided to facilitate a workshop for process managers and staff to identify opportunities for improving productivity and reducing defects. Which of the following is the most likely reason the CRO chose the workshop approach?

  A. It minimizes the amount of time spent and cost incurred to gather the necessary information.
  B. Responses can beconfidential, thus encouraging participants to be candid expressing their concerns.
  C. Workshops do not require extensive facilitation skills and are therefore ideal for nonauditors.
  D. Workshop participants have an opportunity to learn while contributing ideas toward the objectives.
  D. Workshop participants have an opportunity to learn while contributing ideas toward the objectives.