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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 401:

  Which of the following statements about including consulting engagements in the annual internal audit plan is true?

  A. All requests for consulting engagements must be included in the annual internal audit plan.
  B. Assurance engagements must be included in the annual internal audit plan, but there is no requirement to include consulting engagements.
  C. Consulting engagements do not need to be included in the annual internal audit plan unless requested by the board.
  D. The acceptance of proposed consulting engagements into the annual internal audit plan may depend on their ability to add value.
  D. The acceptance of proposed consulting engagements into the annual internal audit plan may depend on their ability to add value.

• Question 402:

  Once an audit report is drafted, the auditor's supervisor should review it primarily to ensure that all:

  A. Statements are supported and can be authenticated.
  B. Recommendations for corrective action are clear.
  C. Processes within the audited area were reviewed.
  D. Sample sizes appear appropriate for any issues found.
  A. Statements are supported and can be authenticated.

• Question 403:

  An employee in the sales department completes a purchase requisition and forwards it to the purchaser. The purchaser places competitive bids and orders the requested items using approved purchase orders. When the employee receives the ordered items, she forwards the packing slips to the accounts payable department. The invoice for the ordered items is sent directly to the sales department, and an administrative assistant in the sales department forwards the invoices to the accounts payable department for payment. Which of the following audit steps best addresses the risk of fraud in the cash receipts process?

  A. Verify that approvals of purchasing documents comply with the authority matrix.
  B. Observe whether the purchase orders are sequentially numbered.
  C. Examine whether the sales department supervisor approves invoices for payment.
  D. Determine whether the accounts payable department reconciles all purchasing documents prior to payment.
  C. Examine whether the sales department supervisor approves invoices for payment.

• Question 404:

  An internal auditor is planning a detailed review of human resources department processes. The review objective is to ascertain the control effectiveness of key business processes. Which of the following would be most useful to facilitate planning for this engagement?

  A. Human resources management reports.
  B. Documented work flows.
  C. Risk and control self-assessment.
  D. Interview with the head of the human resources department.
  B. Documented work flows.

• Question 405:

  The chief audit executive (CAE) notes that management has adopted the option of not taking action on an audit issue involving a sizeable risk which has been accepted in the past. Which would be an appropriate action by the CAE?

  A. Close the issue by noting that follow-up will be completed as part of the next engagement.
  B. Discuss the matter with management to determine a resolution.
  C. Accept management's decision as the same risk has been accepted in the past.
  D. Report the situation to the board for immediate resolution.
  B. Discuss the matter with management to determine a resolution.

• Question 406:

  What is one purpose of checklist questions in an internal control questionnaire?

  A. To ask about internal audit actions to be taken to ensure the audit engagement is on budget.
  B. To ask about operational targets and key performance indicators.
  C. To ask about fraud scenarios and loopholes of the internal control system.
  D. To ask about criteria against which process execution can be tested.
  D. To ask about criteria against which process execution can be tested.

• Question 407:

  Which of the following topics must the internal audit staff discuss with management during the exit conference?

  1.Issues identified during the audit.

  2.Evaluation criteria used to select controls for testing.

  3.Staff who were interviewed during the audit.

  4.The reporting process for the draft and final report.

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

• Question 408:

  Which of the following statements concerning workpapers is the most accurate?

  A. The organization and the format of workpapers is the same for all engagements.
  B. The extent of what is included in workpapers is a matter of professional judgment.
  C. Workpapers should be complete so that every conceivable question that can be raised should be answered.
  D. Copies of operational management's records should not be included, but referenced so that they can be located.
  B. The extent of what is included in workpapers is a matter of professional judgment.

• Question 409:

  During an audit, a staff internal auditor observed that management's acceptance of residual risk was marginally beyond the organization's risk tolerance. Which of the following is the most appropriate auditor response?

  A. Note this as a defficiency and ensure that it is included in the final audit report.
  B. Meet with management to convince them that the level of risk is unacceptable.
  C. Escalate the observation to the audit supervisor for further action.
  D. No further action is needed, as the observation is only marginally beyond the risk tolerance level.
  C. Escalate the observation to the audit supervisor for further action.

• Question 410:

  Which of the following would be an appropriate role of the internal audit function?

  A. Determine the consequences for ethics violations.
  B. Be responsible for the management of a whistle blowing hotline.
  C. Establish the ethics policies for the organization.
  D. Evaluate the effectiveness of the organization's ethics-related activities.
  D. Evaluate the effectiveness of the organization's ethics-related activities.