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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 381:

  During follow-up, the chief audit executive (CAE) is having a discussion with management about the internal audit team's recommendations related to a significant issue. Management accepted the issue but took no remedial action. What is the next step for the CAE?

  A. The CAE should reassess and validate the risk tolerance policy.
  B. The CAE should escalate the issue to senior management .
  C. The CAE should reiterate the internal audit team's recommendations to management .
  D. The CAE should grant management more time to implement the recommendation and check the status of the issue during the next scheduled follow-up.
  B. The CAE should escalate the issue to senior management .

• Question 382:

  The project manager responsible for overseeing a controversial project decides to accept the risks associated with the project launch. These risks might have a significant impact on the organization meeting its environmental sustainability goals. Which of the following is the most appropriate next step for the chief audit executive to take in response to the decision?

  A. Educate employees working on the project launch about the risks.
  B. Notify the board about the significant risks the organization might face.
  C. Communicate the risks to senior management.
  D. Instruct the project manager to stop the controversial project development.
  B. Notify the board about the significant risks the organization might face.

• Question 383:

  In an organization with a large internal audit activity, which of the following actions would typically be performed by the engagement supervisor and not the chief audit executive?

  A. Provide interim updates to the organization's governing body.
  B. Assign sufficient resources to complete the audit engagement.
  C. Determine the appropriate retention period for the audit documents.
  D. Evaluate during fieldwork whether testing is sufficient to achieve engagement objectives.
  D. Evaluate during fieldwork whether testing is sufficient to achieve engagement objectives.

• Question 384:

  Which of the following would most likely contribute to discrepancies between receiving reports and the number of units in a shipment?

  A. Failing to compare the quality of goods received with specifications.
  B. Using inadequate vendor selection procedures.
  C. Accepting improper authorization for purchases.
  D. Indicating the quantities ordered on the receiving department's copy of the purchase order.
  D. Indicating the quantities ordered on the receiving department's copy of the purchase order.

• Question 385:

  Reviewing internal audit report drafts with clients is:

  1.Required according to the Standards.

  2.A form of courtesy.

  3.Ethically mandated.

  4.A form of validation.

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

• Question 386:

  While planning for an accounts payable audit, an internal auditor performs an entity-level controls analysis. Which of the following statements is true regarding the approach used by the auditor?

  A. It enables the auditor to identify the inherent risks to the effective operation of accounts payable process controls.
  B. It enables the auditor to understand the framework of the activities and associated accounts payable subprocesses.
  C. It enables the auditor to understand the accounts payable process and its flow, including key steps and systems.
  D. It enables the auditor to categorize the population of transactions within the accounts payable process.
  C. It enables the auditor to understand the accounts payable process and its flow, including key steps and systems.

• Question 387:

  An audit identified a number of weaknesses in the configuration of a critical client/server system. Although some of the weaknesses were corrected prior to the issuance of the audit report, correction of the rest will require between 6 and 18 months for completion. Consequently, management has developed a detailed action plan, with anticipated completion dates, for addressing the weaknesses. What is the most appropriate course of action for the chief audit executive to take?

  A. Assess the status of corrective action during a follow-up audit engagement after the action plan has been completed.
  B. Assess the effectiveness of corrections by reviewing statistics related to unplanned system outages, and denials of service.
  C. Reassign information systems auditors to assist in implementing management's action plan.
  D. Evaluate the ability of the action plan to correct the weaknesses and monitor key dates and deliverables.
  D. Evaluate the ability of the action plan to correct the weaknesses and monitor key dates and deliverables.

• Question 388:

  An internal auditor completed a test of 30 randomly selected accounts. For five of the accounts selected, the auditor was unable to find supporting documentation in the normal place of storage. Which of the following next steps would be most appropriate for the internal auditor to take?

  A. Conclude that the test failed because at least 17 percent of the sample items were not supported.
  B. Select five new accounts to replace the ones that were missing supporting documentation.
  C. Expand the sample size to 60 to determine whether the error rate remains the same.
  D. Contact management to determine whether the supporting documentation can be located elsewhere.
  D. Contact management to determine whether the supporting documentation can be located elsewhere.

• Question 389:

  Which of the following would provide the greatest assurance of the accuracy of a computer program's computation of freight charges for catalog sales?

  A. Use discovery sampling, selecting transactions from invoices which should have freight charges added to them.
  B. Use either test data or parallel simulation to test the computer application.
  C. Use difference estimation, selecting transactions from invoices which should have freight charges added to them.
  D. Use generalized audit software to select a monetary-unit sample of invoices that have been billed to customers.
  B. Use either test data or parallel simulation to test the computer application.

• Question 390:

  If observed during fieldwork by an internal auditor, which of the following activities is least important to communicate formally to the chief audit executive?

  A. Acts that may endanger the health or safety of individuals.
  B. Acts that favor one party to the detriment of another.
  C. Acts that damage or have an adverse effect on the environment.
  D. Acts that conceal inappropriate activities in the organization.
  B. Acts that favor one party to the detriment of another.