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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 601:

  According to IIA guidance, which of the following statements is true regarding an engagement supervisor's use of review notes?

  A. The engagement supervisor's review notes should be retained in the final documentation even after they are addressed.
  B. The engagement supervisor's review notes cannot be used as evidence of engagement supervision.
  C. The engagement supervisor's review notes could be cleared from all final documentation after they are addressed.
  D. The engagement supervisor's review notes must be maintained in a checklist separate from the final documentation.
  C. The engagement supervisor's review notes could be cleared from all final documentation after they are addressed.

• Question 602:

  Which of the following is the best approach for obtaining feedback from engagement clients regarding the quality of internal audit work?

  A. Ask questions during the exit interviews and send copies of the documented responses to the clients.
  B. Call engagement clients after the exit interviews and send copies of the documented responses to the clients.
  C. Distribute questionnaires to selected engagement clients shortly before preparing the internal audit annual activity report.
  D. Provide questionnaires to engagement clients at the beginning of each engagement and request that the clients complete and return them after the engagement is completed.
  D. Provide questionnaires to engagement clients at the beginning of each engagement and request that the clients complete and return them after the engagement is completed.

• Question 603:

  Which of the following best describes the primary concern of the audit manager upon review of engagement working papers of an auditor?

  A. To ensure adequate control over the custody of working papers is exercised by the auditor.
  B. To ensure that as part of the documentation the auditor collected original documents that can corroborate the audit findings.
  C. To ensure that the work papers create background for subsequent reviews.
  D. To ensure that the audit programs are followed by the auditor.
  D. To ensure that the audit programs are followed by the auditor.

• Question 604:

  Which of the following would be a red flag that indicates the possibility of inventory fraud?

  I. The controller has assumed responsibility for approving all payments tofficertain vendors.

  II. The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.

  III. Sales commissions are not consistent with the organization's increased levels of sales.

  IV.

  Payments tofficertain vendors are supported by copies of receiving memos, rather than originals.

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

• Question 605:

  Which of the following is the correct ratio to use in calculating the dollar value of the population if the auditor is using ratio estimation?

  

  A. 0.10
  B. 0.96
  C. 1.04
  D. 10.00
  C. 1.04

• Question 606:

  An internal auditor and engagement client are deadlocked over the auditor's differing opinion with management on the adequacy of access controls for a major system. Which of the following strategies would be the most helpful in resolving this dispute?

  A. Conduct a joint brainstorming session with management.
  B. Ask the chief audit executive to mediate.
  C. Disclose the client's differing opinion in the final report.
  D. Escalate the issue to senior management for a decision.
  A. Conduct a joint brainstorming session with management.

• Question 607:

  After completing an assurance engagement, the chief audit executive (CAE) concludes that management has accepted a level of risk that may be unacceptable to the organization. What is the most appropriatefirst step for the CAE to take?

  A. Discuss the issue with senior management.
  B. Discuss the issue only with the CEO.
  C. Inform the board.
  D. Discuss the issue with the members of management responsible for the risk area.
  A. Discuss the issue with senior management.

• Question 608:

  Which of the following is the primary purpose of implementing a program whereby employees are rotated from other parts of the organization into the internal audit activity?

  A. It provides the internal audit activity with more resourcing options to meet the audit plan
  B. It offers internal auditors the opportunity to learn more about other work areas.
  C. It gives nonauditors a better understanding of the control environment.
  D. It provides an opportunity for the recruitment of employees as permanent internal auditors
  D. It provides an opportunity for the recruitment of employees as permanent internal auditors

• Question 609:

  Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the organization's ability to continue business. How would the chief audit executive respond?

  A. Assume responsibility for quantifying and minimizing the residual risks to the organization.
  B. Assess the level of financial risks that may affect the organization's stability.
  C. Inform the regulatory agency about senior management's action and seek guidance.
  D. Proceed with a consulting engagement to benchmark similar organizations' business practices in the region.
  B. Assess the level of financial risks that may affect the organization's stability.

• Question 610:

  Which of the following should be the engagement supervisor's primary objective during a quality review of an internal auditor's workpapers?

  A. To assess whether any material mistakes were made by the internal auditor, or whether there is a lack of audit evidence.
  B. To assess whether the reviewer is able to reach the same conclusions as the internal auditor, based solely on the information presented in the workpapers.
  C. To assess whether the procedures prescribed in the audit program were completed.
  D. To assess whether the internal auditor was able to gather extensive information regarding the audit process and related sub-processes.
  B. To assess whether the reviewer is able to reach the same conclusions as the internal auditor, based solely on the information presented in the workpapers.