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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 541:

  If an auditor used nonstatistical sampling instead of statistical sampling to estimate the value of inventory, which of the following would be true?

  A. The confidence level could not be quantified.
  B. The precision would be larger.
  C. The projected value of inventory would be less reliable.
  D. The risk of incorrect acceptance would be higher.
  A. The confidence level could not be quantified.

• Question 542:

  During the planning phase of an audit of the treasury function, an internal auditor conducted a risk assessment of the function in order to:

  A. Report any high-risk exposures of the treasury function to management and the board.
  B. Determine whether appropriate resources are present to carry out the treasury function.
  C. Comply with the internal audit charter and applicable regulatory requirements.
  D. Identify areas of the treasury function that should be considered for potential engagement objectives.
  D. Identify areas of the treasury function that should be considered for potential engagement objectives.

• Question 543:

  How do internal auditors generally determine the priority of the areas within the engagement scope?

  A. By calculating the period of time when the area was fast audited by internal auditors.
  B. By totaling the monetary value of the processes within the organization in the scope of the engagement.
  C. By counting the number of red flags indicating the potential fraudulent activities within the area.
  D. By estimating the likelihood of a risk occurring and the potential impact of that risk on the organization.
  D. By estimating the likelihood of a risk occurring and the potential impact of that risk on the organization.

• Question 544:

  A manager of one of a retailer's several retail outlets is stealing cash from cash sales, recording the sales as accounts receivable, and subsequently writing off the ctitious accounts receivable as bad debts. Which of the following comparisons would be most effective in signaling the possibility of such a fraud?

  A. Bad debt expense as a percentage of sales, compared to that of the other outlets.
  B. Bad debt expense as a percentage of sales, compared to that of previous years.
  C. Percentage of past-due accounts receivable, compared to that of the other outlets.
  D. Percentage of past-due accounts receivable, compared to that of previous years.
  A. Bad debt expense as a percentage of sales, compared to that of the other outlets.

• Question 545:

  Which of the following best defines an engagement conclusion?

  A. An auditor's determination of the cause of an engagement
  B. An auditor's professional judgment of the situation which was reviewed.
  C. An opinion that must be included in the engagement final communication.
  D. A recommendation for corrective action.
  B. An auditor's professional judgment of the situation which was reviewed.

• Question 546:

  During a review of the treasury function, an internal auditor identified a risk that all bank accounts may not be included in the daily reconciliation process. Which of the following responses would be most effective to mitigate this risk?

  A. The treasury supervisor establishes a threshold for amounts on bank statements to be reconciled against data in the system.
  B. The treasury analyst performs a daily reconciliation of all bank statements obtained via email against data in the system.
  C. The treasury analyst reviews a daily report automatically generated by the treasury system, which shows bank statements that have not been uploaded into the accounting system.
  D. The treasury supervisor seeks an annual Confirmation from the bank regarding the quantity of bank statements processed within a year.
  C. The treasury analyst reviews a daily report automatically generated by the treasury system, which shows bank statements that have not been uploaded into the accounting system.

• Question 547:

  Which of the following types of internal audit consulting engagements is an example of a facilitation service?

  I. Conducting control self-assessment workshops.

  II. Participating on standing committees.

  III. eviewing regulatory compliance.

  IV.

  Benchmarking.

  V.

  Estimating savings from outsourcing processes.

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

• Question 548:

  In an effort to address emerging cybersecurity risks, the board requests that the chief audit executive (CAE) conduct an information systems audit. However, the internal audit activity is relatively inexperienced in this area. Which of the

  following actions should the CAE take?

  A. Decline the engagement, as the internal audit activity does not have the competencies required to perform the engagement
  B. Postpone the engagement until the internal audit activity is adequately staffed to perform the engagement
  C. Conduct on-the-job training of existing internal audit staff until they have acquired enough experience to perform the engagement
  D. Submit a written recommendation to the board for approval to obtain competent staff through outsourcing
  D. Submit a written recommendation to the board for approval to obtain competent staff through outsourcing

• Question 549:

  During an audit of suspense accounts, the internal auditor found that there were no written policies on how suspense accounts should be treated. The auditor also found that suspense account balances were cleared once per week, rather

  than daily.

  Which of the following is the most appropriate first response by the auditor?

  A. The auditor should conclude that suspense accounts were not being cleared on a timely basis because they should be cleared daily
  B. The auditor should ask management whether any undocumented policies exist and. if so, determine whether they are adequate
  C. The auditor should conclude that the clearing of suspense accounts was timely and appropriate because weekly clearing is sufficient.
  D. The auditor should rely on his professional judgment and experience to develop criteria for evaluating the existing controls over suspense accounts
  B. The auditor should ask management whether any undocumented policies exist and. if so, determine whether they are adequate

• Question 550:

  In which of the following ways can a chief audit executive demonstrate conformance with Standards requirements regarding the communication of risk acceptance?

  A. Minutes of meetings where a significant risk issue was discussed with the executive management team or the board.
  B. Regular reviews of internal audit practices, including IIA guidance, with the internal audit activity.
  C. A policy in the internal audit manual that describes the organization's reporting and internal auditors' role in it.
  D. Risk reviews and reports that demonstrate changes in risk trends and mitigation measures.
  A. Minutes of meetings where a significant risk issue was discussed with the executive management team or the board.