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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 531:

  Which of the following is an example of sampling risk?

  A. Utilizing inappropriate software to perform a test.
  B. Selecting a sample size that is not large enough.
  C. Misinterpreting sampling results.
  D. Performing the wrong audit test.
  B. Selecting a sample size that is not large enough.

• Question 532:

  An internal auditor is asked to perform an assurance engagement in the organization's newly acquired subsidiary. When developing the objectives for the engagement, which of the following statements describes the most important items that the auditor needs to consider?

  A. Previous performance of the subsidiary specifically its financial results over the last three years and the outcome of external audit reviews.
  B. The results of previous internal audits of the subsidiary the recommendations provided and whether the recommended actions have been implemented.
  C. Organizational strategy objectives, risks, control framework and the expectations of stakeholders regarding the audit.
  D. The qualifications and competencies of the subsidiary's management team and their understanding of risk and control.
  C. Organizational strategy objectives, risks, control framework and the expectations of stakeholders regarding the audit.

• Question 533:

  When planning an audit engagement, what should an internal auditorfirst consider when assessing the risk of fraud in the area to be audited?

  A. Impact of and exposure to fraud.
  B. Existence of evidence of fraud.
  C. Organizational structure.
  D. Management's risk appetite.
  A. Impact of and exposure to fraud.

• Question 534:

  Which of the following statements is true regarding internal control questionnaires?

  A. Internal control questionnaires are useful in evaluating the effectiveness of standard operating procedures.
  B. Internal control questionnaires provide reliable documents allowing internal auditors to cover many control procedures in little time.
  C. Internal control questionnaires can be used by internal auditors as an interview guide.
  D. Internal control questionnaires provide direct audit evidence, which may need corroboration.
  C. Internal control questionnaires can be used by internal auditors as an interview guide.

• Question 535:

  Which of the following is a preventive control for fraud?

  A. Determining if the number of manually prepared disbursement checks is high.
  B. Reconciling the purchase orders with the requisitions.
  C. Verifying that new vendors appear on the vendor pre-approved list.
  D. Conducting an inventory count of the warehouse.
  C. Verifying that new vendors appear on the vendor pre-approved list.

• Question 536:

  Which of the following statements is true regarding the use of internal control questionnaires (ICQs)?

  A. ICQs are efficient because they minimize the need for follow-up with survey respondents.
  B. Controls with positive survey responses can be eliminated from further testing.
  C. Answers to survey questions can be easily misinterpreted.
  D. ICQs offer limited value for organizations with uniform procedures.
  A. ICQs are efficient because they minimize the need for follow-up with survey respondents.

• Question 537:

  According to IIA guidance, which of the following are Benefits to the internal audit activity when conducting an assurance mapping exercise?

  A. Identification of gaps in risk coverage, and minimization of duplicate assurance efforts.
  B. Identification of gaps in risk coverage, and consolidation of risk reporting efforts.
  C. Resolution of identified testing errors, and minimization of duplicate assurance efforts.
  D. Resolution of identified testing errors, and consolidation of risk reporting efforts.
  A. Identification of gaps in risk coverage, and minimization of duplicate assurance efforts.

• Question 538:

  An organization has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly charging for costs related to contract change orders. Which of the following procedures are appropriate for testing this suspicion?

  1.Determine if the contractor has received proper approval of change orders from management.

  2.Determine if the contractor has billed for original contract work cancelled by the change orders.

  3.Determine if the contractor has charged change orders with costs already billed to the original contract.

  4.Determine if the contractor has been paid for change orders that have not yet been completed.

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

• Question 539:

  According to IIA guidance, which of the following factors should an internal auditor consider when assessing the likelihood of fraud risk?

  A. The effect on the organization's reputation.
  B. Any potential damage to the organization's relationship with customers.
  C. Past fraud allegations and actual occurrences.
  D. The potential and realized financial impacts.
  D. The potential and realized financial impacts.

• Question 540:

  According to IIA guidance, which of the following procedures would be least effective in managing the risk of payroll fraud?

  A. The employee's name listed on organization's payroll is compared to the personnel records.
  B. Payroll time sheets are reviewed and approved by the timekeeper before processing.
  C. Employee access to the payroll database is deactivated immediately upon termination.
  D. Changes to payroll are validated by the personnel department before being processed.
  B. Payroll time sheets are reviewed and approved by the timekeeper before processing.