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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 431:

  The head of customer service asked the chief audit executive (CAE) whether internal auditors could assist her staff with conducting a risk self-assessment in the customer service department. The CAE promised to meet with customer service

  managers, analyze relevant business processes, and come up with a proposal.

  Who is most likely to be the final approver of the engagement objectives and scope?

  A. Senior management of the organization.
  B. The chief audit executive.
  C. The head of customer service.
  D. The board of directors.
  C. The head of customer service.

• Question 432:

  An internal auditor is analyzing sales records and is concerned whether a transaction is recorded in the correct period. The accounting manager explains that the external auditor approved the records, and produces an email from the external audit team leader. How should the internal auditor respond?

  A. Ask the external auditor to review the same transaction again as an independent third party.
  B. Consult accounting principles, standards and relevant guidelines in regard to timing of the entry.
  C. Interview the chief financial officer and obtain her opinion on how the transactions should be recorded.
  D. Compare the recording of this transaction to how similar ones were executed last year.
  B. Consult accounting principles, standards and relevant guidelines in regard to timing of the entry.

• Question 433:

  Which of the following statements is true regarding the final assurance engagement report issued to management?

  A. Ratings are only used to assess the condition of an observation made by an internal auditor.
  B. Audit findings may be communicated to management prior to issuance of the final approved audit report.
  C. Communications must be relevant, logical, and free from errors before they are disseminated.
  D. The audit report must present the information in the following order: (1) audit scope, (2) engagement objectives, and (3) engagement results.
  C. Communications must be relevant, logical, and free from errors before they are disseminated.

• Question 434:

  Which of the following conclusions would be appropriate for a beginning auditor performing an audit of a payroll department?

  A. Employee taxes have been deducted at the correct rates, and the taxes have been forwarded to the appropriate government agency.
  B. Although there is insufficient segregation of duties, the impact is mitigated by compensating controls.
  C. The payroll computer system should be replaced.
  D. The payroll department staff has the appropriate level of skills.
  A. Employee taxes have been deducted at the correct rates, and the taxes have been forwarded to the appropriate government agency.

• Question 435:

  According to IIA guidance, which of the following statements is true regarding the risk assessment process performed by the internal audit activity?

  A. The assessment of high-level risks is typically a linear process.
  B. Management should create the preliminary risk matrix.
  C. The analysis should begin with the identification of objectives.
  D. Likelihood should receive greater consideration than impact.
  C. The analysis should begin with the identification of objectives.

• Question 436:

  Which information-gathering method would be most efficient for an internal auditor to determine whether specified control procedures are in place?

  A. Interviews
  B. Observations
  C. Reperformance
  D. Internal control questionnaires
  D. Internal control questionnaires

• Question 437:

  Which of the following factors could interfere with effective problem solving by an internal auditor?

  I. Reacting to previous experiences with clients.

  II. Focusing only on the most likely cause.

  III.

  Correcting the symptoms of problems.

  A. I only
  B. III only
  C. I and II only
  D. I, II, and III
  D. I, II, and III

• Question 438:

  An organization owns vehicles that are kept off-site by employees to pick up and deliver orders. An internal auditor selects a specific vehicle from the fixed asset register for testing. Which of the following would best provide sufficient, indirect evidence for the auditor to confirm the existence of the vehicle?

  A. Review logs of the vehicles assigned to employees for the delivery of goods during the engagement period.
  B. Visit the home address of the specific employee to see the selected vehicle.
  C. Compare the registered details of the vehicle in the fixed asset register to a date- stamped photograph of the vehicle.
  D. Seek independent confirmation of the vehicle's details from one of the delivery employees.
  C. Compare the registered details of the vehicle in the fixed asset register to a date- stamped photograph of the vehicle.

• Question 439:

  Which of the following is a weakness that is inherent in the use of the test data method to test internal controls in a computer-based accounting system?

  A. The auditor must test many transactions with the same condition in order to achieve assurance that the condition is being detected.
  B. Conditions that were not specifically considered by the auditor may go untested.
  C. The approach requires the creation of "dummy companies," possibly destroying or altering actual company data in the process.
  D. Inclusion of atypical data in the test data may cause errors to be noted on the exception report.
  B. Conditions that were not specifically considered by the auditor may go untested.

• Question 440:

  An auditor decides to vouch a sample of ledger entries back to their original documentation. In terms of whether all transactions had been recorded, this test would be:

  A. Relevant to the completeness objective.
  B. Irrelevant to the completeness objective.
  C. A more timely test of completeness than evidence from interviews.
  D. A more biased test of completeness than evidence from interviews.
  B. Irrelevant to the completeness objective.