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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 481:

  If there is a significant error or omission in the final audit report that was communicated to management, which of the following is the key action for the internal audit activity?

  A. Communicate the corrected information to the manager of the audited department.
  B. There should be a follow-up audit to address the error or omission.
  C. The auditor should update the scope of the audit to include the omission.
  D. The corrected communication should be redistributed to the original recipients.
  D. The corrected communication should be redistributed to the original recipients.

• Question 482:

  Which of the following statements regarding completely outsourcing an internal audit activity is accurate?

  A. It is more cost-effective than maintaining an in-house audit staff
  B. It is usually more suitable for big organizations with multiple locations and diverse operations
  C. It still includes an in-house liaison resource assigned with responsibility for the internal audit activity
  D. It is preferred when external and internal audit services can be purchased from the same provider
  C. It still includes an in-house liaison resource assigned with responsibility for the internal audit activity

• Question 483:

  When creating the internal audit plan, the chief audit executive should prioritize engagements based primarily on which of the following?

  A. The last available risk assessment.
  B. Requests from senior management and the board.
  C. The longest interval since the last examination of each audit universe item.
  D. The auditable areas required by regulatory agencies.
  A. The last available risk assessment.

• Question 484:

  When forming an opinion on the adequacy of management's systems of internal control, which of the following findings would provide the most reliable assurance to the chief audit executive? During an audit of the hiring process in a law firm, it was discovered that potential employees' credentials were not always Confirmed sufficiently. This process remained unchanged at the following audit. During an audit of the accounts payable department, auditors calculated that two percent of accounts were paid past due. This condition persisted at a follow up audit. During an audit of the vehicle fleet of a rental agency, it was determined that at any given time, eight percent of the vehicles were not operational. During the next audit, this figure had increased. During an audit of the cash handling process in a casino, internal audit discovered control defficiencies in the transfer process between the slot machines and the cash counting area. It was corrected immediately.

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

• Question 485:

  Which of the following engagement techniques would be best to meet the objective of identifying a personal conflict-of-interest situation affecting an organization's procurement function?

  A. Inquiry.
  B. Analytical review.
  C. Observation.
  D. Inspection of documents.
  A. Inquiry.

• Question 486:

  At the conclusion of an audit of an organization's treasury department, a report was issued to the treasurer, chief financial officer, president, and board. Because of the sensitivity of some findings, a follow-up review was performed. The auditor should provide the report of follow- up findings to the:

  I. Treasurer.

  II. Chief financial officer.

  III. President.

  IV.

  Board.

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

• Question 487:

  The chief audit executive can illustrate the value of the internal audit activity by reporting which of the following to the board?

  A. The overall performance resulting from the internal audit balanced scorecard.
  B. The number of outstanding and overdue management actions.
  C. The experience of the organization's internal auditors.
  D. The number of audits in the annual audit plan relative to similar organizations.
  D. The number of audits in the annual audit plan relative to similar organizations.

• Question 488:

  The chief audit executive's responsibility regarding control processes includes:

  A. Assisting senior management and the audit committee in the development of an annual assessment about internal control.
  B. Overseeing the establishment of internal control processes.
  C. Maintaining the organization's governance processes.
  D. Ensuring that the internal audit activity assesses all control processes annually.
  A. Assisting senior management and the audit committee in the development of an annual assessment about internal control.

• Question 489:

  During the review of an organization's retail fraud deterrence program, an employee mentions that an expensive fraud surveillance information system is rarely used. The internal auditor concludes that additional staff are required to properly utilize the system to its full potential. According to IIA guidance, which criteria for evidence is most lacking to reach this conclusion?

  A. Sufficiency.
  B. Reliability.
  C. Relevancy.
  D. Usefulness.
  A. Sufficiency.

• Question 490:

  Which of the following trends found on financial reports would most likely indicate a possible problem?

  A. A material decrease in the receivables turnover.
  B. A material increase in inventory turnover.
  C. A material increase in daily sales compared to total outstanding receivables.
  D. A material increase in the acid-test ratio.
  A. A material decrease in the receivables turnover.