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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 571:

  Which of the following statements is true regarding the chief audit executive's (CAE's) responsibilities after completing an assurance or consulting engagement?

  A. The CAE must establish a follow-up process for both assurance and consulting engagements to monitor that management actions have been effectively implemented to address observations.
  B. The CAE must communicate the results of assurance and consulting engagements to whoever can ensure that the results are given due consideration.
  C. The CAE must acknowledge satisfactory performance when communicating the results of assurance and consulting engagements.
  D. The CAE may delegate the responsibility for communicating the results of consulting engagements, although this responsibility cannot be delegated for assurance engagements.
  B. The CAE must communicate the results of assurance and consulting engagements to whoever can ensure that the results are given due consideration.

• Question 572:

  Which of the following actions by management would reduce an employee's opportunity to commit fraud?

  A. Establishing physical controls over company assets.
  B. Eliminating bonuses tied to sales or other performance goals.
  C. Defining ethical behavior expectations in the company handbook.
  D. Identifying consequences, such as termination, for fraudulent activities.
  A. Establishing physical controls over company assets.

• Question 573:

  Which of the following is a significant governance issue that should be reported by the chief audit executive to the board?

  A. There is no risk management and control process, and risk management is solely the responsibility of operational managers.
  B. The organization's code of conduct is distributed to all employees each year, however, employees are not required to attest that they will operate in compliance with the code.
  C. Reconciliation of planned board meeting agendas to meeting minutes finds that one meeting was cancelled, and the agenda topics were covered at the following meeting.
  D. The review of the five-year strategic plan shows that the details of the plan have not been clearly communicated to employees throughout the organization.
  B. The organization's code of conduct is distributed to all employees each year, however, employees are not required to attest that they will operate in compliance with the code.

• Question 574:

  Which of the following is true regarding roles and responsibilities in risk management processes?

  A. Setting strategic direction resides with senior management.
  B. Ownership of risks resides with the board.
  C. Acceptance of residual risk resides with executive management level.
  D. Identifying, assessing, mitigating and monitoring activities on a continuous basis rests with the internal audit activity.
  C. Acceptance of residual risk resides with executive management level.

• Question 575:

  According to the Standards, which of the following would least likely be considered a red flag when evaluating the risk for fraud?

  A. Cash receipts appear to be lower than expected from an employee's cash drawer.
  B. Health Benefits are detected to be claimed for a deceased employee.
  C. An employee did not approve an internal report detailing expenses for the month.
  D. It is alleged that an employee is receiving vendor kickbacks.
  C. An employee did not approve an internal report detailing expenses for the month.

• Question 576:

  According to IIA guidance, which of the following activities is most likely to enhance stakeholders' perception of the value the internal audit activity (IAA) adds to the organization?

  1.The IAA uses computer-assisted audit techniques and IT applications.

  2.The IAA uses a consistent risk-based approach in both its planning and engagement execution.

  3.The IAA demonstrates the ability to build strong and constructive relationships with audit clients.

  4.The IAA frequently is involved in various project teams and task forces in an advisory capacity.

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

• Question 577:

  Which of the following tools would be most appropriate for assigning and clarifying distinct duties for individuals on a project team?

  A. A RACI chart.
  B. A PERT chart.
  C. A Gantt chart.
  D. A Pareto chart.
  A. A RACI chart.

• Question 578:

  An engagement supervisor found that an internal auditor's conclusion was not adequately supported by testing. Which of the following additional sources of evidence would most likely enable the supervisor to accept the conclusion?

  A. Management of the area under review has accepted the auditor's conclusion.
  B. There is interview evidence that supports the internal auditor's conclusion.
  C. Monitoring performed by management of the area under review produced similar results as the auditor's tests.
  D. The organization's external auditors have reported a similar conclusion.
  D. The organization's external auditors have reported a similar conclusion.

• Question 579:

  Which of the following statements is true regarding engagement planning?

  A. The engagement objectives are the boundaries for the engagement, which outline what will be included in the review.
  B. The risk-based objectives of the engagement can be determined once the scope of the engagement has been formed.
  C. For a consulting engagement, planning typically occurs after the engagement objectives and scope have already been determined.
  D. For an assurance engagement, once the scope is established and testing has begun, the scope cannot be Modified.
  C. For a consulting engagement, planning typically occurs after the engagement objectives and scope have already been determined.

• Question 580:

  During an audit of a retail organization, an internal auditor found a scheme in which the warehouse director and the purchasing agent diverted approximately $500,000 of goods to their own warehouse, then sold the goods to third parties. The fraud was not found earlier since the warehouse director updated the perpetual inventory records and then forwarded receiving reports to the accounts payable department for processing. Which of the following procedures would have most likely led to the discovery of the missing materials and the fraud?

  A. Select a random sample of receiving reports and trace to the recording in the perpetual inventory records. Note differences and investigate by type of product.
  B. Select a random sample of purchase orders and trace to receiving reports and to the records in the accounts payable department.
  C. Take an annual physical inventory, reconciling amounts with the perpetual inventory records. Note the pattern of differences and investigate.
  D. Select a random sample of sales invoices and trace to the perpetual inventory records to see if inventory was on hand. Investigate any differences.
  C. Take an annual physical inventory, reconciling amounts with the perpetual inventory records. Note the pattern of differences and investigate.