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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 441:

  An internal auditor is conducting an initial risk assessment of an audit area and wants to assess management's compliance with privacy laws for safeguarding customer information stored on the organization's servers. Which course of action is appropriate for this phase of the engagement?

  A. Solicit the services of a specialist information systems auditor.
  B. Obtain the most current approved copies of the organization's privacy policy.
  C. Consult with legal counsel about new privacy laws to establish appropriate criteria.
  D. Consider the detection risk of noncompliance with the laws.
  A. Solicit the services of a specialist information systems auditor.

• Question 442:

  Which of the following statements is correct regarding the assessment of risk in the annual audit planning process?

  1.Activities requested by management should be considered higher risk than those requested by the audit committee.

  2.Activities with lower budgets can be as high risk as those with higher budgets.

  3.The potential financial or adverse exposure should always be considered in the assessment of risk.

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

• Question 443:

  An internal auditor assigned to carry out a regulatory compliance audit decides to circulate a close ended internal control questionnaire to process owners as part of the preliminary survey. What is the value of adopting this method?

  A. The respondents may freely offer additional information to the questionnaire
  B. The information obtained through this method is easy to quantify
  C. The information obtained through this method stands alone without needing corroboration
  D. There is no limit to information that may be obtained via this method
  B. The information obtained through this method is easy to quantify

• Question 444:

  In performance auditing, which of the following must first be determined by the internal auditor?

  A. Which key performance indicators are in use.
  B. Management's objectives for the process.
  C. Whether management controls are appropriate.
  D. Determination that appropriate benchmarks are in place.
  B. Management's objectives for the process.

• Question 445:

  Which of the following documents should the chief audit executive review and approve?

  1.Workpaper retention policy.

  2.Audit committee meeting minutes.

  3.Internal audit handbook.

  4.Quarterly financial statements.

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

• Question 446:

  An audit client responded to recommendations from a recent consulting engagement. The client indicated that several recommended process improvements would not be implemented. Which of the following actions should the internal audit activity take in response?

  A. Escalate the unresolved issues to the board, because they could pose significant risk exposures to the organization.
  B. Confirm the decision with management and document this decision in the audit file.
  C. Document the issue in the audit file and follow up until the issues are resolved.
  D. Initiate an assurance engagement on the unresolved issues.
  B. Confirm the decision with management and document this decision in the audit file.

• Question 447:

  Which of the following statements is true pertaining to interviewing a fraud suspect?

  1.Information gathered can be subjective as well as objective to be useful.

  2.The primary objective is to obtain a voluntary written confession.

  3.The interviewer is likely to begin the interview with open-ended questions.

  4.Video recordings always should be used to provide the highest quality evidence.

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

• Question 448:

  An internal auditor provided the following statement about division A's performance during the month: "Because supplies of raw material X were scarce, division A's profits declined by 15 percent." Which of the following can be validly concluded from the auditor's statement?

  I. Division A's production level declined by 15 percent.

  II. Division A could have sold more products than it produced.

  III.

  Division A usually sells all of the products that it produces.

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

• Question 449:

  According to IIA guidance, senior management and the board have ultimate responsibility for which of the following aspects of internal audit resource management?

  A. Developing appropriate goals and metrics to monitor the adequacy of internal audit resources.
  B. Ensuring that internal audit resources are adequate to meet the needs of the organization.
  C. Determining the skills and competencies required to perform planned internal audit activities.
  D. Ensuring that internal audit resources are deployed effectively.
  B. Ensuring that internal audit resources are adequate to meet the needs of the organization.

• Question 450:

  While performing an audit of the human resources department, an internal auditor discovered unencrypted files containing the personal information of employees stored on a public shared drive. According to IIA guidance, which of the following actions by the auditor would be the most appropriate?

  A. Remove the files containing the social security numbers and personal information.
  B. Communicate the issue to the chief audit executive as well as IT and legal departments.
  C. Change permissions to the shared drive to only allow access to human resources personnel.
  D. Immediately review the audit logs to see if anyone has accessed this information and follow-up.
  B. Communicate the issue to the chief audit executive as well as IT and legal departments.