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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 451:

  Which of the following is a disadvantage of using flowcharts during a risk assessment?

  A. People cannot quickly understand the processes via flowcharts.
  B. Flowcharts are not applicable for evaluating the design of controls.
  C. Some serious risks that are not part of the linear process can be missed.
  D. Flowcharts do not enable auditors to identify missing controls.
  C. Some serious risks that are not part of the linear process can be missed.

• Question 452:

  An internal auditor is evaluating controls over the purchasing function. The function includes the material control department, the purchasing department, and the receiving department. Which of the following is true regarding the presentation of the process flow among the three departments?

  A. A vertical flowchart of each department, showing inputs at the top and outputs at the bottom, would be most useful.
  B. Flowcharts are not useful for documenting process flow.
  C. A horizontal flowchart, with the departments described across the top and the process flowing horizontally, would be most useful.
  D. Both a flowchart and narratives are needed due to the number of departments involved.
  C. A horizontal flowchart, with the departments described across the top and the process flowing horizontally, would be most useful.

• Question 453:

  Which of the following documents should an internal auditor include in the workpapers as the best evidence to support a finding that the organization overpaid employees for travel expenses?

  A. A copy of the organization's established policies and procedures for authorizing travel expenses.
  B. An analysis of resent travel vouchers of employees who were reimbursed by the organization.
  C. An example of a travel voucher, including authorization, that would be acceptable to submit for reimbursement.
  D. A list of employees who are responsible for approving travel vouchers for payment.
  A. A copy of the organization's established policies and procedures for authorizing travel expenses.

• Question 454:

  Which of the following factors would not be considered in determining appropriate follow-up procedures?

  A. The significance of the audit finding.
  B. The effort and cost needed to correct the reported condition.
  C. The availability of funds in the audited department's budget to correct the reported condition.
  D. The potential consequences if the corrective action fails.
  C. The availability of funds in the audited department's budget to correct the reported condition.

• Question 455:

  Which of the following analytical procedures is most appropriate for an internal auditor to use to compare the level of employee adherence to standards in selected units of an organization against the organization's preferred standard?

  A. Reperformance.
  B. Benchmarking.
  C. Trend analysis.
  D. Vertical analysis.
  C. Trend analysis.

• Question 456:

  Which of the followings statements describes a best practice regarding assurance engagement communication activities?

  A. All assurance engagement observations should be communicated to the audit committee.
  B. All assurance engagement observations should be included in the main section of the engagement communication.
  C. During the "communicate" phase of an assurance engagement, it is best to Define the methods and timing of engagement communications.
  D. A detailed escalation process should be developed during the planning stage of an assurance engagement.
  D. A detailed escalation process should be developed during the planning stage of an assurance engagement.

• Question 457:

  An organization has acquired a new line of business. None of the organization's internal auditors have the required expertise to perform an internal audit of the new business line; therefore, the chief audit executive (CAE) has contracted the services of an external audit firm to perform the engagement. The CAE has assigned a member of the internal audit team to assist the external team with the engagement. According to the Standards, which of the following statements is true regarding supervision of the engagement?

  A. The CAE may rely upon the external firm's auditor in charge to supervise the engagement.
  B. The external firm's auditor in charge must defer to the judgment of the CAE for any disputes.
  C. The CAE is not responsible for the quality of an audit performed by an external firm.
  D. The CAE should not assign an inexperienced staff member to assist with the engagement.
  B. The external firm's auditor in charge must defer to the judgment of the CAE for any disputes.

• Question 458:

  An audit observation noted that annual inventory counts of biofuel was not being performed appropriately. Fuel yards were not visited and physical amounts of biofuel were not reconciled with accounting data. Management of the division understood the issue and promised to resolve the problem. When should the internal auditor schedule a follow-up review?

  A. As soon as possible; no later than two months after the audit.
  B. When convenient for both parties.
  C. When management has indicated that the issue has been resolved.
  D. Before financial year end.
  B. When convenient for both parties.

• Question 459:

  Which of the following processes real-transaction data through auditor-developed test programs?

  A. Generalized audit software.
  B. Tracing.
  C. Parallel simulation.
  D. Mapping.
  C. Parallel simulation.

• Question 460:

  In a client satisfaction survey for an internal audit engagement, client management should be asked to assess which of the following factors?

  I. Audit team's knowledge of the audited area.

  II. Usefulness of the audit results.

  III. Quality of management of the internal audit activity.

  IV.

  Clarity of the scope and objectives of the audit engagement.

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