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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 501:

  Which of the following would provide the best audit evidence regarding the effectiveness of an applied research department?

  A. Develop a cost-per-product analysis for products developed over the past five years.
  B. Develop a report on revenue generated by or cost savings directly attributable to newly developed products.
  C. Compare research as a percentage of revenue between this company and all major competitors in the same industry.
  D. Compare the number of this year's new product developments to the number of new product developments for the past five years.
  B. Develop a report on revenue generated by or cost savings directly attributable to newly developed products.

• Question 502:

  An internal auditor for a large telecommunications organization identified potential risk factors related to a planned billing system conversion. Which of the following risk factors would present the least potential exposure to the organization?

  A. Critical customer support functions are not available for a short period.
  B. Invoice generation disruptions due to required maintenance.
  C. Inaccurate billing of telephone calls due to database error.
  D. End user criticism and lack of support for the new system.
  B. Invoice generation disruptions due to required maintenance.

• Question 503:

  According to IIA guidance, which of the following is true regarding the exit conference for an internal audit engagement?

  A. A primary purpose of the exit conference is to provide for the timely communication of observations that call for immediate management action.
  B. Both the chief audit executive and the chief executive over the activity or function reviewed must attend the exit conference to validate the findings.
  C. The exit conference provides only anticipated results for inclusion in the final audit communication.
  D. During the exit conference, the performance of the internal auditors who executed the engagement is reviewed.
  C. The exit conference provides only anticipated results for inclusion in the final audit communication.

• Question 504:

  An internal audit report includes a recommendation to remove inappropriate user access to an IT application. Which of the following does the recommendation represent?

  A. An agreed action adopted by management.
  B. A condition-based recommendation as an interim solution to correct a current condition.
  C. A cause-based recommendation to prevent inappropriate access being granted again.
  D. A management action plan.
  B. A condition-based recommendation as an interim solution to correct a current condition.

• Question 505:

  During an operational audit of a chain of pizza delivery stores, an auditor determined that cold pizzas were causing customer dissatisfaction. A review of oven calibration records for the last six months revealed that adjustments were made on over 40 percent of the ovens. Based on this, the auditor:

  A. Has enough evidence to conclude that improperly functioning ovens are the cause.
  B. Needs to conduct further inquiries and reviews to determine the impact of the oven variations on the pizza temperature.
  C. Has enough evidence to recommend the replacement of some of the ovens.
  D. Must search for another cause since approximately 60 percent of the ovens did not require adjustment.
  B. Needs to conduct further inquiries and reviews to determine the impact of the oven variations on the pizza temperature.

• Question 506:

  Which of the following external risks should be included when organizing the risk universe if unhappy customers can easily share their complaints with other existing and potential customers?

  A. Competitive risk.
  B. Social media risk.
  C. Outsourced risk.
  D. Joint venture risk.
  B. Social media risk.

• Question 507:

  Which of the following statements is true regarding the internal audit activity's reliance on the work of other internal or external assurance providers?

  A. The internal audit activity should place greater reliance on the work of external assurance providers than that of internal assurance providers.
  B. The internal audit activity should always complete additional assurance work to supplement the work of external assurance providers.
  C. The internal audit activity should use an ad hoc process to determine how it will place reliance on the work of others.
  D. The internal audit activity may place reliance on the work of other assurance providers regardless of whether the other assurance providers are independent.
  D. The internal audit activity may place reliance on the work of other assurance providers regardless of whether the other assurance providers are independent.

• Question 508:

  Due to emerging new technologies that greatly affect the organization; the chief audit executive (CAE) wants to conduct more frequent IT audits and is particularly focused on improving the quality of these engagements. Which of the following is the most viable solution for the CAE to ensure that IT audit quality is immediately enhanced and maintained long-term?

  A. Each year, send a different member of the internal audit staff to an IT audit conference to learn about emerging technologies and practice.
  B. Contract an external IT specialist to offer advice and consult on IT audits.
  C. Employ an independent external IT specialist to perform IT audits for the first year.
  D. Invite qualified staff from the IT department to serve as guest auditors and lead IT audits.
  B. Contract an external IT specialist to offer advice and consult on IT audits.

• Question 509:

  Which of the following is one of the five attributes that internal auditors include when documenting a deficiency?

  A. The criteria used to make the evaluation.
  B. The methodology used to analyze data.
  C. The proposed follow-up engagement work to be performed.
  D. The scope of work performed during the engagement.
  A. The criteria used to make the evaluation.

• Question 510:

  The chief audit executive (CAE) at a cement distribution company advised management that three of the company's five scales were past due for calibration, according to the calibration schedule. In response to the interim report, management informed the CAE that the scales will be calibrated within the coming week. The CAE explained that his plan would simply address the current condition rather than the root cause. After discussing the issue with senior management and failing to reach an appropriate resolution, how should the CAE proceed?

  A. Allow management to implement his preferred action plan, because management is ultimately responsible.
  B. Escalate the issue and discuss the matter with the board, because the CAE is unable to find an agreeable resolution.
  C. Schedule follow-up reviews of this area more frequently, given that the root cause was never addressed and recurrence of the issue is expected.
  D. Develop an additional action plan to supplement management's condition-based action plan and ultimately address the root cause.
  B. Escalate the issue and discuss the matter with the board, because the CAE is unable to find an agreeable resolution.