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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 471:

  The following is a list of major findings in the executive summary report for an audit of the contract management process:

  1.Noncompliance with contract provisions requiring vendors to obtain insurance policies with indemnity value of not less than $1 million.

  2.Compliance with contract obligations and deliverables is not monitored.

  3.No contract agreement with five vendors providing core services.

  Which of the following is an appropriate conclusion that can be drawn from these findings?

  A. These are weaknesses resulting from a lack of a documented contracting policy
  B. Substandard service delivery by vendors may not be detected
  C. Management should expedite actions to rectify the observations identified
  D. The internal controls guiding contract management are not operating effectively
  D. The internal controls guiding contract management are not operating effectively

• Question 472:

  The internal audit activity has adopted the balanced scorecard approach to assess its performance. According to IIA guidance, which of the following is a key performance indicator relevant to the audit client?

  A. Percentage of recommendations implemented by corrective action date.
  B. Staff experience.
  C. Percentage of planned audits completed.
  D. Conformance with the International Professional Practices Framework.
  C. Percentage of planned audits completed.

• Question 473:

  During the planning stage of an assurance engagement, an internal auditor has been assigned to prepare a risk matrix. Which of the following should the internal auditor consider when attempting to identify process-level risks?

  A. Possible tests.
  B. Possible scenarios.
  C. Possible controls.
  D. Possible samples.
  B. Possible scenarios.

• Question 474:

  As part of a preliminary study during an audit of the payment process in accounts payable, an internal auditor requests a list of procedures from the finance manager. The auditor intends to establish whether activities documented in the

  procedures are undertaken by respective employees as prescribed.

  Which of the following internal audit techniques will provide the most persuasive information to achieve this objective?

  A. Interviewing the finance manager regarding the activities.
  B. Mailing questionnaires to the accounts payable employees about the activities
  C. Observing the activities as performed by the employees.
  D. Reperforming the activities indicated in the payment procedures.
  D. Reperforming the activities indicated in the payment procedures.

• Question 475:

  An internal auditor is preparing to use statistical sampling to verify that all purchases are supported by authorized documentation. The internal procedure states that an approved purchase requisition is needed for each purchase order, and every purchase greater than $1,000 must have at least three bids. Which of the following would constitute the population of interest from which the auditor should draw the sample?

  A. Submitted bids.
  B. Purchases greater than $1,000.
  C. Purchase requisitions.
  D. Purchase orders.
  D. Purchase orders.

• Question 476:

  In a sampling application, the group of items about which the auditor wants to estimate some characteristic is called the:

  A. Population.
  B. Attribute of interest.
  C. Sample.
  D. Sampling unit.
  A. Population.

• Question 477:

  Which of the following is an advantage of utilizing an external fraud specialist in a suspected fraud investigation?

  A. Increased access to the organization's employees.
  B. Increased ability to preserve evidence and the chain of command.
  C. Increased ability to scrutinize the organization's key business processes.
  D. Increased access to the organization's software and proprietary data.
  B. Increased ability to preserve evidence and the chain of command.

• Question 478:

  Which of the following might alert an auditor to the possibility of fraud in a division?

  I. The division is not scheduled for an external audit this year.

  II. Sales have increased by 10 percent.

  III.

  A significant portion of management's compensation is directly tied to reported net income of the division.

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

• Question 479:

  Which of the following is the best example of an audit engagement supervision activity?

  A. An audit manager attending exit meetings.
  B. An audit manager executing engagement procedures.
  C. An audit manager documenting workpapers.
  D. An audit manager identifying audit findings.
  D. An audit manager identifying audit findings.

• Question 480:

  An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?

  

  A. Option A
  B. Option B
  C. Option C
  D. Option D
  B. Option B