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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 581:

  A limitation of using ratio analysis in an audit engagement is that it:

  A. Often uses financial information provided by management which has not been reviewed for reliability and validity.
  B. Is an expensive method of testing.
  C. Requires computer software in order to develop meaningful interpretations of data.
  D. Is useful only when comparisons can be made across other industries.
  A. Often uses financial information provided by management which has not been reviewed for reliability and validity.

• Question 582:

  An internal audit activity develops a model to monitor actual payments to vendors with the aim of finding suspicious activities. Which of the following could be established as a potential outlier for the model to identify?

  A. Circumvention of purchase orders approval limits.
  B. Similar payments made to multiple vendors who sell the same services.
  C. Single and round-numbered disbursements.
  D. Early vendor payments to receive invoice discounts.
  C. Single and round-numbered disbursements.

• Question 583:

  An engagement supervisor reviewed a staff internal auditor's documentation and noted that several edits should be made. The internal audit activity uses an electronic workpaper database and does not maintain paper files as its system of record. A system error prevents the engagement supervisor from adding her electronic signature to any workpaper in the database. Given this situation, which is the most appropriate response to provide evidence of supervisory review?

  A. The engagement supervisor should print sign and date each workpaper after the review is complete and scan the document into the database as evidence of review
  B. Because the engagement supervisor called the help desk to correct the IT problem, he should upload the support-request ticket from the help desk to serve as evidence of the review
  C. The engagement supervisor should ask another manager-level internal auditor not associated with the project to sign the workpaper on his behalf
  D. The engagement supervisor should instruct the staff internal auditor to add a note in the workpaper on his behalf indicating that the workpaper was reviewed and feedback was provided
  A. The engagement supervisor should print sign and date each workpaper after the review is complete and scan the document into the database as evidence of review

• Question 584:

  During an assurance engagement, it was discovered that cooling water from production facilities was being pumped to a local lake without being filtered. Local management acknowledged the environmental violation, claimed it was an

  accident, and committed to an immediate response. A few weeks later, the chief audit executive (CAE) received an anonymous call and learned that nothing had changed at the production site.

  Which of the following is the most appropriate next step for the CAE to take?

  A. Ensure that a follow-up audit engagement is included in the next annual internal audit plan.
  B. Escalate the issue to the board, as it is an intolerable environmental risk.
  C. Request local management to demonstrate outcomes of corrective actions.
  D. Investigate whether it is possible to identify the anonymous whistleblower for more questioning.
  B. Escalate the issue to the board, as it is an intolerable environmental risk.

• Question 585:

  An internal auditor is reviewing purchases made through the organization's corporate credit card program. Which of the following statements best describes a root cause of a defficiency?

  A. A personal computer was purchased from a non-approved vendor.
  B. Company policy limits card use to $500 per transaction.
  C. A control to detect split purchases has not been activated in the credit card system.
  D. Sample testing found 10% non-compliance with the organization's business travel policy.
  C. A control to detect split purchases has not been activated in the credit card system.

• Question 586:

  When conducting a performance appraisal of an internal auditor who has been a below-average performer, it is not appropriate to:

  A. Notify the internal auditor of the upcoming appraisal several days in advance.
  B. Use objective, impartial language.
  C. Use generalizations.
  D. Document the appraisal.
  C. Use generalizations.

• Question 587:

  Which of the following would be included in an internal audit department's quality assurance and improvement program?

  1.Ongoing internal assessments of the performance of the internal audit department.

  2.Periodic internal reviews through self-assessments.

  3.Assessments conducted by a qualified external reviewer at least once every five years.

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

• Question 588:

  An internal auditor notes that employees continue to violate segregation-of-duty controls in several areas of the finance department, despite previous audit recommendations. Which of the following recommendations is the most appropriate to address this concern?

  A. Recommend additional segregation-of-duty reviews.
  B. Recommend appropriate awareness training for all finance department staff.
  C. Recommend rotating finance staff in this area.
  D. Recommend that management address these concerns immediately.
  B. Recommend appropriate awareness training for all finance department staff.

• Question 589:

  During which of the following systems development stages would it be most useful for an internal auditor to be involved?

  A. Coding and testing.
  B. User acceptance and post-implementation.
  C. Design and implementation.
  D. Testing and user acceptance.
  C. Design and implementation.

• Question 590:

  An organization contracted a third party to construct a new facility that was estimated to cost $25 million. Which of the following is the most pertinent reason for the organization to audit the contractor's records?

  A. The contract includes a right-to-audit clause.
  B. The contractor will be paid on a cost-plus basis.
  C. The estimated cost is high.
  D. The contractor has subcontracted much of the work.
  B. The contractor will be paid on a cost-plus basis.