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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 421:

  According to IIA guidance, which of the following describes the primary reason the chief audit executive (CAE) should actively network and build relationships with senior management and the board?

  A. To fulfill the CAE's responsibility to keep the board appropriately informed.
  B. To expand the CAE's understanding of management issues.
  C. To help maintain the objectivity of the internal audit activity.
  D. To increase opportunities to demonstrate the internal audit activity performance.
  A. To fulfill the CAE's responsibility to keep the board appropriately informed.

• Question 422:

  Which method of examining entity-level controls involves gathering information from work groups that represent different levels in an organization?

  A. Questionnaires.
  B. Surveys.
  C. Structured interviews.
  D. Facilitated team workshops.
  A. Questionnaires.

• Question 423:

  The internal audit activity of an organization obtained approval to add a senior auditor to its staff. The chief audit executive, audit manager, and audit supervisor each will interview the candidates. According to the Standards, which of the following best explains the involvement of management in the interview process?

  A. Provides audit management with the opportunity to communicate expectations regarding ethical behavior standards.
  B. Enables audit management to outline its quality assurance and improvement program with the senior auditor.
  C. Assists audit management in planning by more effectively allocating the senior auditor to appropriate audits.
  D. Allows audit management to explain the criteria that will be used to evaluate the senior auditor's performance.
  C. Assists audit management in planning by more effectively allocating the senior auditor to appropriate audits.

• Question 424:

  Which of the following would most likely prompt special notification from the chief audit executive to senior management?

  A. Operational management has decided to weigh an audit issue against the organization's risk tolerance.
  B. A control's inaccurate operation has materially impacted the accuracy of the prior year's financial statements.
  C. Occurrences of asset misappropriation have been identified as a result of an ineffective operational control design.
  D. The controls that management performed to Confirm compliance with health and safety standards were not systematically documented.
  A. Operational management has decided to weigh an audit issue against the organization's risk tolerance.

• Question 425:

  An internal auditor is planning a consulting engagement, and the objective is to identify opportunities to improve the efficiency of the organization's procurement process. The auditor is preparing to conduct a preliminary survey of the area. Which of the following approaches would be most useful to obtain relevant information to support the engagement objective?

  A. Complete a transaction walkthrough that focuses on the design and operation of financial reporting controls.
  B. Conduct interviews with senior management to obtain their input and insights regarding operational controls.
  C. Perform a comprehensive review of the organization's existing policies and standard operating procedures.
  D. Review the procurement process map with employees who carry out key activities to obtain their input and insights.
  D. Review the procurement process map with employees who carry out key activities to obtain their input and insights.

• Question 426:

  According to IIA guidance, which of the following must be included in the communication when the internal audit activity issues an overall opinion?

  A. Consideration of reliance on other assurance providers and relevant management responses to audit findings.
  B. The framework or criteria on which the opinion is based and the workpapers from control testing.
  C. A summary of the information that supports the opinion and scope limitations.
  D. Relevant management responses to audit findings and scope limitations.
  D. Relevant management responses to audit findings and scope limitations.

• Question 427:

  When a significant finding is noted early during a review of the accounts payable function, which next course of action is best for communicating the issue?

  A. Inform accounting management via an interim memorandum update.
  B. Note the item in the workpapers for inclusion in the final audit report.
  C. Call a meeting and discuss the issue with the audit committee.
  D. Alert the CEO as soon as the issue is discovered.
  D. Alert the CEO as soon as the issue is discovered.

• Question 428:

  In which of the following situations is an internal auditor most likely to use observation as an audit procedure to achieve the audit objective?

  A. To determine that inventory counts taken by inventory count personnel are accurate.
  B. To determine that inventory counts are being performed monthly.
  C. To determine that inventory count personnel are following established procedures.
  D. To determine that inventory adjustments based on inventory counts are recorded properly.
  C. To determine that inventory count personnel are following established procedures.

• Question 429:

  An audit of customer accounts receivable found that outstanding receivables as a percentage of revenue had increased significantly during the past two years. The increase was attributed to the extension of credit, at the urging of the marketing department, to a number of companies that were not credit worthy. Which of the following would be least useful in monitoring the disposition of this finding?

  A. Responses from the manager of accounts receivable regarding collection of outstanding receivables.
  B. Periodic updates from the controller regarding the status of corrective actions.
  C. Information from the credit and marketing personnel assigned the responsibility for reevaluating credit policies.
  D. Updates from the information technology division regarding implementation of a new accounts receivable system.
  D. Updates from the information technology division regarding implementation of a new accounts receivable system.

• Question 430:

  An internal auditor has discovered that duplicate payments were made to one vendor. Management has recouped the duplicate payments as a corrective action. Which of the following describes management's action in this case?

  A. A condition-based action plan.
  B. A cause-based action plan.
  C. A root cause-based action plan.
  D. An effect-based action plan.
  D. An effect-based action plan.