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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 511:

  A team of internal auditors is assigned to audit the employee relations process in an organization, which includes employee conduct and disciplinary hearings. Which of the following audit approaches would provide the auditors with the best evidence to determine the degree to which disciplinary decisions are complying with documented policy?

  A. Review a random sample of concluded disciplinary reports to assess how the policy was applied in each case.
  B. Interview a sample of impacted employees for their opinions on the clarity and fairness of the policy.
  C. Observe several disciplinary hearings to determine whether they are in compliance with the policy.
  D. Conduct an interview to assess the disciplinary hearing chairman's understanding of the policy and its appropriate use.
  A. Review a random sample of concluded disciplinary reports to assess how the policy was applied in each case.

• Question 512:

  Operational management has asked the chief audit executive (CAE) for access to all workpapers from a recent engagement. According to IIA guidance, which of the following is the CAE's most appropriate response?

  A. Approve the request if access is deemed necessary to explain engagement observations.
  B. Deny the request, as engagement workpapers are intended for use by the internal audit activity.
  C. Seek approval from senior management or the board prior to granting management access to the workpapers.
  D. Grant access only to pertinent workpapers if management agrees to implement the control enhancements recommended by the internal audit activity.
  C. Seek approval from senior management or the board prior to granting management access to the workpapers.

• Question 513:

  An internal auditor is preparing an internal control questionnaire for the procurement department as part of a preliminary survey. Which of the following would provide the best source of information for questions?

  A. A relevant procurement law or regulation.
  B. A list of the company's vendors.
  C. A review of a sample of tenders during the audited period
  D. A summary of the company's expenditures and their categories.
  A. A relevant procurement law or regulation.

• Question 514:

  The chief audit executive (CAE) determined that the internal audit activity lacks the resources needed to complete the internal audit plan. Which of the following would be the most appropriate action for the CAE to take?

  A. Use guest auditors from within the organization and leverage their experience by assigning them to lead engagements in areas where they previously worked
  B. Outsource some of the audits to the organization's external auditor, who is already familiar with the organization
  C. Invite non-auditors to join the internal audit activity for a two-year rotational position and assign them to audit teams reviewing areas where they have no previous management responsibility
  D. Recruit recent college graduates and employ them as audit interns, with the aim of offering permanent employment
  B. Outsource some of the audits to the organization's external auditor, who is already familiar with the organization

• Question 515:

  Which of the following is an effective approach for internal auditors to take to improve collaboration with audit clients during an engagement?

  1.Obtain control concerns from the client before the audit begins so the internal auditor can tailor the scope accordingly.

  2.Discuss the engagement plan with the client so the client can understand the reasoning behind the approach.

  3.Review test criteria and procedures where the client expresses concerns about the type of tests to be conducted.

  4.Provide all observations at the end of the audit to ensure the client is in agreement with the facts before publishing the report.

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

• Question 516:

  The internal audit activity performs the following sequence of risk management activities: identification, analysis, and evaluation. According to IIA guidance, which of the following assurance approaches does this describe?

  A. Process elements approach.
  B. Enterprise-wide risk management approach.
  C. Key principles approach.
  D. Maturity model approach.
  A. Process elements approach.

• Question 517:

  Risk assessments can be formal or informal. Which of the following is an advantage of a formal risk assessment methodology?

  A. It ensures emerging risks are covered.
  B. It ensures all risks are covered.
  C. It assesses disparate risks using the same methodology.
  D. It assesses risks using multiple methodologies.
  C. It assesses disparate risks using the same methodology.

• Question 518:

  During an audit of a contract for computer security, a governmental auditor finds that a contractor has developed a system that could be the most advanced in the industry. If it seems that the contractor is charging the government for developmental cost of a system that might be sold to other organizations, what is the auditor's best course of action?

  A. Estimate the cost to develop the advanced security system and inform the contractor that it will be a disallowed cost.
  B. Exclude the observation from the engagement final communication because the contract was vague and the level of security is clearly acceptable.
  C. Estimate the added cost, report it to management, and suggest that management meet with its lawyers and the contractor to resolve differences.
  D. Compare the cost of the security program with previous costs incurred by governmental operations and inform the contractor that the difference will be a potential overcharge subject to further review.
  C. Estimate the added cost, report it to management, and suggest that management meet with its lawyers and the contractor to resolve differences.

• Question 519:

  During a consulting engagement, an internal auditor identifies new risks which will impact the scope and Sufficiency of the engagement audit plan. According to the Standards, the internal auditor should:

  A. Discuss the potential impact on the scope with the client.
  B. Modify the scope to incorporate the new risks and continue the engagement.
  C. End the engagement, as the audit scope is no longer sufficient to meet the audit objective.
  D. Continue the engagement but highlight the impacts on the audit scope in the final report.
  A. Discuss the potential impact on the scope with the client.

• Question 520:

  While conducting a payroll audit, an internal auditor in a large government organization found inadequate segregation in the duties assigned to the assistant director of personnel. When the auditor explained the risk of fraud, the assistant director became upset, terminated the interview, and threatened to sue the organization for defamation of character if the audit engagement was not curtailed. The auditor discussed the situation with the chief audit executive (CAE). The CAE should then:

  A. Curtail the audit engagement to avoid potential legal action.
  B. Provide a report to senior management recommending a fraud investigation.
  C. Continue the original engagement program as planned but include a comment about the assistant director's reaction in the engagement final communication.
  D. Add additional testing to determine whether other indicators of fraud exist.
  D. Add additional testing to determine whether other indicators of fraud exist.