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

IIA IIA-CIA-PART2 Online Questions & Answers

• Question 611:

  An organization's finance manager plans to implement a state-of-the-art management system to better manage the organization's receivables. The finance manager consulted the chief audit executive (CAE) and asked for her assistance in determining whether the organization is able to accommodate this system. How would the CAE proceed to determine the objectives of this engagement?

  A. Ask the CEO to determine the scope and objectives of the engagement.
  B. Request that the board disclose its concerns over governance for inclusion in the engagement.
  C. Discuss the concerns with the finance manager and work together to agree on the engagement objectives.
  D. Review previous audit reports from the area and develop engagement objectives to address the area's key risks and controls.
  B. Request that the board disclose its concerns over governance for inclusion in the engagement.

• Question 612:

  Which of the following statements regarding the use of external contracted services by the chief audit executive (CAE) is false?

  A. The CAE's responsibility is not impaired by engaging an external expert.
  B. The external expert could have a prior relationship with the audit client.
  C. The audit report should not disclose the use of contracted services.
  D. The expert should be directed by the objectives and scope of work.
  C. The audit report should not disclose the use of contracted services.

• Question 613:

  Which of the following offers the best explanation of why the auditor in charge would assign a junior auditor to complete a complex part of the audit engagement?

  A. The senior auditors are unavailable, as they are currently working on other portions of the engagement.
  B. The auditor in charge believes that the junior auditor should obtain a specific type of experience.
  C. The audit engagement has a tight deadline and the work must be completed timely.
  D. The auditor in charge is unable to identify audit staff with all of the required skills needed to complete the engagement.
  B. The auditor in charge believes that the junior auditor should obtain a specific type of experience.

• Question 614:

  Which of the following analytical tools would best assist an internal auditor in determining the scope of an audit engagement?

  A. An assurance map.
  B. An organization chart.
  C. A process map.
  D. A fishbone diagram.
  A. An assurance map.

• Question 615:

  According to the International Professional Practices Framework, which of the following statements is correct regarding the communication of audit results?

  I. Summary reports may be issued separately from or in conjunction with the final report.

  II. Interim reports may be written or oral.

  III. Detailed reports should always be issued to the audit committee.

  IV.

  Interim reports should be used to communicate information which requires immediate attention.

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

• Question 616:

  When presenting an observation in writing, which of the following is usually true regarding the level of detail provided?

  1.The description of the observation in the final audit report contains more detail than the description in the engagement workpapers

  2.The description of the observation in the engagement workpapers contains more detail than the description in a preliminary observation document

  3.A preliminary observation document contains more detail than the observation description in the final audit report

  4.A preliminary observation document contains more detail than the observation description in the engagement workpapers.

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

• Question 617:

  When reviewing vendor management controls in the organization's accounts payable system, the internal auditor discovered inappropriate payments. Which of the following best describes a condition attribute the auditor may reference to communicate her observation?

  A. To achieve segregation of duties, one employee should add new vendors, and a different employee should record transactions.
  B. To make the system more efficient, the system administrator granted vendor administration rights to all accounts payable clerks.
  C. New vendors have been entered by all accounts payable clerks with no additional approval required.
  D. Several bogus vendors were discovered in the course of random testing; however, the amounts paid to them were immaterial.
  C. New vendors have been entered by all accounts payable clerks with no additional approval required.

• Question 618:

  The internal auditor's opinion in terms of due professional care should be:

  A. Limited to the effectiveness of internal controls.
  B. Expressed only when consensus with top management has been achieved.
  C. Based on experience and free of all bias.
  D. Based on sufficient factual evidence.
  D. Based on sufficient factual evidence.

• Question 619:

  A chief audit executive (CAE) determined that management chose to accept a high-level risk that may be unacceptable to the organization. Which is the best course of action for the CAE to follow?

  A. Include testing in a subsequent audit to determine if the risks are still present.
  B. Discuss the matter with senior management and, if not resolved, with the board.
  C. Require that management implement controls to mitigate the risks.
  D. Report the risks to the process owners so that they can modify their process.
  B. Discuss the matter with senior management and, if not resolved, with the board.

• Question 620:

  Audit supervision includes approval of the engagement report in order to ensure that:

  A. The client's objectives are met.
  B. Senior management supports the report's conclusions.
  C. Report style and grammar are appropriate.
  D. Report findings are substantiated.
  D. Report findings are substantiated.