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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 411:

  A retail sales company has discontinued a product that normally sold for $100. During the first month of a sale of the product, a 20 percent discount was given. Later that sale price was reduced by an additional 40 percent. What was the overall discount from the original selling price?

  A. 60 percent.
  B. 52 percent.
  C. 48 percent.
  D. 30 percent.
  B. 52 percent.

• Question 412:

  Following an IT systems audit, management agreed to implement a specific control in one of the IT systems. After a period, the internal auditor followed up and learned that management had not implemented the agreed management action

  due to the decision to move to another IT system that has built-in controls, which may address the risks highlighted by the internal audit.

  Which of the following is the most appropriate action to address the outstanding audit recommendation?

  A. The auditor examines the system documentation of the new system to verify that the risk has been addressed in the new system, then reports to senior management the closure of the issue.
  B. The auditor accepts management's explanation that the previously identified issue is adequately addressed by the new IT system, as management understands the concern and is most knowledgeable about the new system, and closes the outstanding issue.
  C. The auditor advises management that replacing the IT system does not dismiss the prior obligation to implement the agreed action plan, and escalates the issue to senior management and the board.
  D. The auditor requires management to provide details regarding the process for selecting the new IT system and whether other systems were evaluated, and closure of the issue would depend on the new information provided.
  A. The auditor examines the system documentation of the new system to verify that the risk has been addressed in the new system, then reports to senior management the closure of the issue.

• Question 413:

  The chief audit executive (CAE) has made a significant change to the internal audit plan and is preparing to present a formal update to the board. According to IIA guidance, which of the following represents the most appropriate approach for the CAE to take?

  A. Inform the board of the change before the presentation, and conduct a discussion session at the time of the presentation to answer questions.
  B. Inform senior management of the change and seek their approval before the presentation, then seek approval from the board at the time of the presentation.
  C. Inform senior management and the board of the change via the presentation, then solicit discussion, and nally seek the approval of only the board.
  D. Inform senior management and the board of the change via the presentation; to approvals are necessary.
  D. Inform senior management and the board of the change via the presentation; to approvals are necessary.

• Question 414:

  Which of the following statements describes an engagement planning best practice?

  A. It is best to determine planning activities on a case-by-case basis because they can vary widely from engagement to engagement.
  B. If the engagement subject matter is not unique, it is not necessary to outline specific testing procedures during the planning phase.
  C. The engagement plan includes the expected distribution of the audit results, which should be keptconfidential until the audit report is final.
  D. Engagement planning activities include setting engagement objectives that align with audit client's business objectives.
  D. Engagement planning activities include setting engagement objectives that align with audit client's business objectives.

• Question 415:

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

  A. It is not the CAE's responsibility to establish a process for a follow-up.
  B. Lack of resources is not a sufficient reason to forgo a follow-up.
  C. Follow-up actions should take priority over new engagements in scheduling.
  D. When resources are scarce, the follow-up can be incorporated into the next engagement.
  B. Lack of resources is not a sufficient reason to forgo a follow-up.

• Question 416:

  Management requested the chief audit executive (CAE) to include an audit of the organization's health and safety program in next year's annual audit plan. However, the internal audit department has no expertise in this area. Which of the following would be the most appropriate action by the CAE?

  A. With management's agreement, amend the scope of the audit to ensure that areas examined do not require specialized knowledge and expertise.
  B. Meet with management to explain that the audit cannot be undertaken and discuss alternative strategies that can be implemented until internal audit can develop its capability in the area.
  C. Accept the request provided management has conducted a thorough risk assessment prior to the engagement to help guide the audit.
  D. Advise management that compliance audits of this type should only be conducted by the corresponding regulatory agency to ensure independence.
  B. Meet with management to explain that the audit cannot be undertaken and discuss alternative strategies that can be implemented until internal audit can develop its capability in the area.

• Question 417:

  During a fraud interview, it was discovered that unquestioned authority enabled a vice president to steal funds from the organization. Which of the following best describes this condition?

  A. Scheme.
  B. Opportunity.
  C. Rationalization.
  D. Pressure.
  B. Opportunity.

• Question 418:

  All of the following tools are employed to control large-scale projects except:

  A. Program evaluation and review technique (PERT).
  B. Critical path method.
  C. Statistical process control.
  D. Gantt charts.
  C. Statistical process control.

• Question 419:

  During an audit of executive travel, an auditor noted that the president's travel expense reimbursements were approved by an executive secretary who reported to the president. The organization's reimbursement policy requires all travel expense reimbursements to be approved by the traveler's supervisor, but it does not address the president's reimbursements. Which of the following represents the auditor's best recommendation in this situation?

  A. The organization's reimbursement policy should be amended to grant the president's executive secretary the authority to approve the president's travel expense reimbursements.
  B. The approval policy for executive travel should be considered at the next meeting of the audit committee of the board of directors.
  C. The president's travel expense reimbursements should be reviewed and approved by the chief financial officer.
  D. The president's noncompliance should be considered immaterial.
  B. The approval policy for executive travel should be considered at the next meeting of the audit committee of the board of directors.

• Question 420:

  An internal auditor has completed an audit of an organization's activities and is ready to issue a report. However, the client disagrees with the internal auditor's conclusions. The auditor should:

  A. Withhold the issuance of the audit report until agreement on the issues is obtained.
  B. Issue the audit report and state both the auditor and client positions and the reasons for the disagreement.
  C. Issue the audit report and omit the client's conclusion as it is not the opinion of the internal auditor.
  D. Perform additional work, with the client's concurrence, to resolve the areas of disagreement and delay the issuance of the report until agreement is reached.
  B. Issue the audit report and state both the auditor and client positions and the reasons for the disagreement.